Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 386

  (1)   The references in sections   384, 385 and 457 to adjusted tainted income are references to amounts that would be passive income, tainted sales income or tainted services income if certain modifications were made to the provisions of Division   8.

  (2)   The modifications are:

  (a)   that paragraphs 446(1)(k), (m) and (n) are replaced with the following:

  "(k)   amounts derived from the disposal of tainted assets;

  (m)   amounts derived from the disposal of tainted commodity investments;

  (n)   amounts derived that are attributable to currency exchange rate fluctuations, except where under section   439 the amounts would, if they were currency exchange gains, relate to an active income transaction;"; and

  (b)   that paragraph   446(1)(k) as so replaced does not apply to an amount derived from the disposal of a tainted asset in the circumstances referred to in paragraphs 450(2)(a) to (c) or (5)(a) to (c); and

  (c)   that paragraph   446(1)(n) as so replaced does not apply to an amount derived where, if it were a currency exchange gain, paragraphs 450(3)(a) and (b) would apply to it; and

  (d)   that the reference in subsection   450(7) to net gains that accrued to the company in respect of the disposal of tainted assets is replaced with a reference to amounts derived by the company from the disposal of tainted assets.