Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 2) 1985No. 123, 1985 - SECT 35

35. For the purposes of the application of sub-section 221YC (1) of the
Income Tax Assessment Act 1936 (in this section referred to as the "Assessment
Act") in ascertaining the amount of provisional tax payable by a taxpayer in
respect of the year of income that commenced on 1 July 1985 (in this section
referred to as the "current year of income"), being a taxpayer who, if section
159N of the Assessment Act were not applicable in relation to the year of
income next preceding the current year of income (in this section referred to
as the "preceding year of income"), would, apart from this section, be liable
to pay provisional tax calculated in accordance with sub-section 221YC (1) or
(1A) of the Assessment Act in respect of the current year of income -

   (a)  if paragraph 221YC (1) (a) of the Assessment Act applies to the
        taxpayer - the amount of provisional tax payable by the taxpayer in
        respect of the current year of income by virtue of that paragraph is
        the amount ascertained by deducting from the amount of income tax that
        would have been assessed in respect of the amount that would have been
        the taxable income of the taxpayer of the preceding year of income if
        -

        (i)    the taxable income of the taxpayer of the
               preceding year of income had, except for the purpose of
               determining the notional income for the purpose of section
               59AB, 86 or 158D of the Assessment Act, been increased by 11%;

        (ii)   where, for the purposes of Division 6AA of Part III of the
               Assessment Act -

                (A)  in the case of a taxpayer to whom Division 3 of Part IV
                     of the Income Tax (Rates) Act 1982 applied - the
                     taxpayer's eligible taxable income of the
                     preceding year of income exceeded $416; or

                (B)  in the case of a taxpayer to whom Division 4 of Part IV
                     of the Income Tax (Rates) Act 1982 applied - the taxpayer
                     had an eligible taxable income of the
                     preceding year of income, that eligible taxable income
                     had been increased by 11%;

        (iii)  for the purposes of section 156 of the Assessment Act, the
               deemed taxable income from primary production of the taxpayer
               of the preceding year of income had been increased by 11%;

        (iv)   the Income Tax (Rates) Act 1982, as that Act applies to
               assessments in respect of the current year of income, had been
               in force and applied to assessments in respect of the
               preceding year of income;

        (v)    the Medicare Levy Act 1984 had not applied in relation to
               assessments in respect of the preceding year of income and the
               Medicare Levy  Act 1985 had applied in relation to such
               assessments as if references in that last-mentioned Act to the
               year of income or financial year that commenced on 1 July 1985
               included references to the year of income or the financial
               year, as the case may be, that commenced on 1 July 1984;

        (vi)   where Division 16 of Part III of the Assessment Act applied in
               the taxpayer's assessment in respect of the
               preceding year of income - that Division had applied as if the
               conditions set out in sub-paragraphs (i) to (v) (inclusive)
               were applicable for the purposes of making that assessment
               other than for the purpose of determining the average income of
               the taxpayer for the purposes of the application of that
               Division; and

        (vii)  the taxpayer had not been entitled to any rebate (other than a
               rebate under section 156 of the Assessment Act applicable in
               relation to the taxpayer in accordance with sub-paragraph (vi))
               or credit in the taxpayer's assessment, the sum of the rebates
               (other than a rebate under section 156 or 159N of the
               Assessment Act) and credits to which the taxpayer was entitled
               in the taxpayer's assessment in respect of income of the
               preceding year of income; and

   (b)  if paragraph 221YC (1)(b) of the Assessment Act applies to the
        taxpayer - the amount of provisional tax payable by the taxpayer in
        respect of the current year of income by virtue of that paragraph is -

        (i)    in a case where -

                (A)  paragraph 221YC (1)(a) of the Assessment Act would apply
                     to the taxpayer in relation to the current year of income
                     but for sub-section 221YA (5) of that Act; and

                (B)  the taxpayer is a taxpayer to whom paragraph 221YA (5)(a)
                     of the Assessment Act applies, but paragraph 221YA (5)(b)
                     of that Act does not apply, in relation to the
                     current year of income, the amount that would be payable
                     by the taxpayer under paragraph 221YC (1)(a) of the
                     Assessment Act (as affected by paragraph (a) of this
                     section) if sub-section 221YA (5) were not included in
                     that Act and Division 16C of Part III of that Act were
                     not applicable in relation to the
                     preceding year of income;

        (ii)   in the case where -

                (A)  paragraph 221YC (1) (a) of the Assessment Act would apply
                     to the taxpayer in relation to the current year of income
                     but for sub-section 221YA (5) of that Act; and

                (B)  the taxpayer is a taxpayer to whom paragraph 221YA (5)
                     (b) of the Assessment Act applies, but paragraph 221YA
                     (5) (a) of that Act does not apply, in relation to the
                     current year of income, the amount that would be payable
                     by the taxpayer under paragraph 221YC (1) (a) of the
                     Assessment Act (as affected by paragraph (a) of this
                     section) if sub-section 221YA (5) were not included in
                     that Act and the taxable income of the taxpayer of the
                     preceding year of income had been increased by the sum of
                     the deductions allowed or allowable to the taxpayer under
                     sections 77F, 124ZAF and 124ZAFA of that Act in the
                     taxpayer's assessment in respect of the preceding year of
                     income;

        (iii)  in the case where -

                (A)  paragraph 221YC (1) (a) of the Assessment Act would apply
                     to the taxpayer in relation to the current year of income
                     but for sub-section 221YA (5) of that Act; and

                (B)  the taxpayer is a taxpayer to whom paragraphs 221YA (5)
                     (a) and (b) of the Assessment Act apply in relation to
                     the current year of income, the amount that would be
                     payable by the taxpayer under paragraph 221YC (1) (a) of
                     the Assessment Act (as affected by paragraph (a) of this
                     section) if -

                (C)  sub-section 221YA (5) were not included in the Assessment
                     Act;

                (D)  Division 16C of Part III of the Assessment Act were not
                     applicable in relation to the preceding year of income;
                     and

                (E)  the amount that, but for this sub-sub-paragraph, would
                     have been the taxable income of the taxpayer of the
                     preceding year of income had been increased by the sum of
                     the deductions allowed or allowable to the taxpayer under
                     sections 77F, 124ZAF and 124ZAFA of the Assessment Act in
                     the taxpayer's assessment in respect of the
                     preceding year of income; and

        (iv)   in any other case - the amount that would be payable by the
               taxpayer under paragraph (a) of this section if the provisions
               of that paragraph applied to the taxpayer in relation to the
               taxpayer's income of the current year of income and -

                (A)  the taxable income of the taxpayer of the
                     preceding year of income had been equal to the amount
                     that the Commissioner estimates would have been the
                     provisional income of the taxpayer if Division 16C of
                     Part III of the Assessment Act were not applicable in
                     relation to the preceding year of income increased by the
                     sum of the deductions (if any) allowed or allowable to
                     the taxpayer under sections 77F, 124ZAF and 124ZAFA of
                     the Assessment Act in the taxpayer's assessment in
                     respect of the preceding year of income;

                (B)  for the purposes of Division 16 of Part III of the
                     Assessment Act, the deemed taxable income from primary
                     production of the taxpayer of the
                     preceding year of income were such amount (if any) as the
                     Commissioner determines; and

                (C)  for the purposes of Division 6AA of Part III of the
                     Assessment Act, the amount of the eligible taxable income
                     of the taxpayer of the preceding year of income were such
                     amount (if any) as the Commissioner determines.