this section does not apply, and is taken never to have applied, to the whole
or the part of the amount subject to the error.
6 After section 102UR
Insert: 102URA Request for notice of liability
- (1)
- A
person or persons may make a written request to the Commissioner to be given a
notice under subsection 102UR(1) in respect of specified circumstances in
which ultimate beneficiary non-disclosure tax may be payable.
Compliance with request
- (2)
- The Commissioner must, subject to subsection (3)
of this section, comply with the request.
Further information
- (3)
- If the Commissioner considers that the notice cannot
be given unless the person or persons give the Commissioner further
information, the Commissioner must request the person or persons to give the
Commissioner the information.
Failure to give information
- (4)
- If the person or persons do not give the
information, the Commissioner is not required to comply with the request to
give the notice.
7 After section 102US
Insert: 102USA Recovery of ultimate beneficiary
non-disclosure tax from persons providing incorrect information etc. to head
trustee
- (1)
- This section applies if the requirements in subsections (2) to
(4) are satisfied.
Requirement for payment of ultimate beneficiary non-disclosure tax
- (2)
- A
requirement for this section to apply is that:
- (a)
- the trustee of a closely held trust does not make a correct UB statement
about the whole or part of a share of the net income of the trust of a year of
income during the UB statement period in relation to the year of income; and
- (b)
- as a result, the trustee becomes liable, or the persons in the trustee
group become jointly and severally liable, under section 102UK to pay ultimate
beneficiary non-disclosure tax; and
- (c)
- the trustee or any of the persons in the trustee group pays an amount (the
recoverable amount ) being some or all of the tax or any general interest
charge under section 102UP in relation to the tax.
Requirement for refusal etc. to provide information or for incorrect statement
- (3)
- A requirement for this section to apply is that:
- (a)
- either:
- (i)
- the trustee of the closely held trust was unable to make a correct UB
statement about the whole or the part of the share of the net income during
the UB statement period because another person (the information source ), when
requested to do so, refused or failed to give information to the trustee; or
- (ii)
- the trustee of the closely held trust purported to make a correct UB
statement about the whole or the part of the share of the net income during
the UB statement period, where the statement was not a correct UB statement
because it contained incorrect information given to the trustee of the closely
held trust by another person (also the information source ), and the trustee
honestly believed on reasonable grounds that the information was correct; and
- (b)
- the trustee of the closely held trust distributed to the trustee
beneficiary an amount representing some or all of the share of the net income
without withholding an amount under section 254 in respect of the recoverable
amount.
Requirement for person failing to provide information etc. to be an ultimate
beneficiary or trustee of interposed trust etc.
- (4)
- A requirement for this
section to apply is that the information source is:
- (a)
- an ultimate beneficiary; or
- (b)
- the trustee beneficiary; or
- (c)
- the trustee of an interposed trust, or a partner in an interposed
partnership, through which an ultimate beneficiary is presently entitled to
some or all of the head trust amount concerned.
Consequences of section applying
- (5)
- If this section applies, the trustee or
the person in the trustee group mentioned in paragraph (2)(c) may, in a court
of competent jurisdiction, sue for the recoverable amount and recover it from
the information source, or if there is more than one such person, those
persons jointly and severally.
8 At the end of section 254
Add:
- (3)
- In paragraphs (1)(d) and (e), and in
its first occurrence in paragraph (1)(h), tax includes, in addition to the
things mentioned in subsection (2):
- (a)
- ultimate beneficiary non-disclosure tax within the meaning of Division 6D
of Part III; and
- (b)
- general interest charge payable under section 102UP in respect of such
tax.
9 Application
(1) The amendments made by this Schedule have the same
application as they would if they had been part of Division 6D of Part III of
the Income Tax Assessment Act 1936 when that Division was originally inserted
in that Act by item 2 of Schedule 1 to the
A New Tax System (Closely Held Trusts) Act 1999 .
(2) To avoid doubt, the
Commissioner may, at any time after the commencement of this Schedule, under
paragraph 102UH(b) of the Income Tax Assessment Act 1936 as amended by this
Schedule, allow a further period in respect of a year of income that ended
before the commencement of this Schedule.
10 Transitional
The references in
paragraphs 102USA(2)(c) and 254(3)(b) of the Income Tax Assessment Act 1936
as inserted by this Schedule to general interest charge under section 102UP
include a reference to:
- (a)
- general interest charge under item 93 of
Schedule 2 to the A New Tax System (Pay As You Go) Act 1999 ; and
Note: Item 93 applied a general interest charge to amounts that became payable
before 1 July 1999.
- (b)
- additional tax under section 102UP of the
Income Tax Assessment Act 1936 as in force before the commencement of item 92
of Schedule 2 to the A New Tax System (Pay As You Go) Act 1999 .
Note: Item 92 had the effect that additional tax under section 102UP continued
to apply to amounts that became payable before 1 July 1999.
[ Minister's
second reading speech made in—
House of Representatives on 17 February
2000
Senate on 15 March 2000 ]
(16/00)
Commonwealth Numbered Acts