Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 4) 1986 No. 154 of 1986 - SECT 25

25. After section 6C of the Principal Act the following section is inserted:
Source of natural resource income derived by a non-resident

"6CA. (1) In this section-
'double tax agreement' means an agreement within the meaning of the Income Tax
(International Agreements) Act 1953;
'natural resource income' means income that-

   (a)  is derived by a non-resident; and

   (b)  is calculated, in whole or in part, by reference to the value or
        quantity of natural resources produced, recovered or produced and
        recovered, in Australia after 7 April 1986,
but does not include-

   (c)  income that consists of royalty; or

   (d)  income where-

        (i)    on 7 April 1986, the non-resident had a continuing entitlement
               to receive the income;

        (ii)   the income was derived by the non-resident pursuant to that
               continuing entitlement;

        (iii)  the non-resident was, at 5 o'clock in the afternoon, by
               standard time in the Australian Capital Territory on 7 April
               1986, a resident, within the meaning of a double tax agreement,
               of a foreign country in respect of which the double tax
               agreement was in force;

        (iv)   before 8 April 1986, the Commissioner had given a statement in
               writing to the effect that income tax would be levied on 50% of
               income included in a specified class of income; and

        (v)    the income is included in that class of income.

"(2) For the purposes of Divisions 5 and 6 of Part III, natural resource
income shall be deemed to be attributable to sources in Australia.

"(3) For the purposes of paragraph 23 (r) and sections 25 and 255, natural
resource income shall be deemed to have been derived from a source in
Australia.".