Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 180.5

Notice about company

  (1)   The Commissioner may give a company a notice in accordance with section   180 - 10 if the requirements of this section are met.

Tax detriment under Division   165

  (2)   In its * income tax return for an income year:

  (a)   the company must have deducted a * tax loss from a * loss year where it would not be allowed to deduct the tax loss if it did not meet the conditions in section   165 - 12; or

  (b)   the company must not have calculated:

  (i)   its taxable income and tax loss under Subdivision   165 - B; and

  (ii)   its * net capital gain and * net capital loss under Subdivision   165 - CB;

    where it would have been required to calculate them under that Subdivision if it did not satisfy the requirements of paragraph   165 - 35(a); or

  (c)   the company must have applied a * net capital loss from an earlier income year in working out its net capital gain where it would not have been allowed to apply the loss if it did not meet the condition in section   165 - 12 as applied on the assumption mentioned in subsection   165 - 96(1); or

  (d)   the company must have deducted a debt that it wrote off as bad in the income year where it would not be allowed to deduct the debt if it did not satisfy the requirements of paragraph   165 - 120(1)(a) or (b).

Role of family trust

  (3)   The Commissioner must be satisfied that the company:

  (a)   if paragraph   (2)(a) applies--meets the conditions in section   165 - 12; or

  (b)   if paragraph   (2)(b) applies--satisfies the requirements of paragraph   165 - 35(a); or

  (c)   if paragraph   (2)(c) applies--meets the conditions in section   165 - 12 as applied on the assumption mentioned in subsection   165 - 96(1); or

  (d)   if paragraph   (2)(d) applies--satisfies the requirements of paragraph   165 - 120(1)(a) or (b);

but it would not do so unless one or more trusts were * family trusts.

Foreign resident trust

  (4)   When the Commissioner gives the notice, for at least one of the * family trusts:

  (a)   a trustee of the trust must be a foreign resident; or

  (b)   the central management and control of the trust must be outside Australia.

When notice must be given

  (5)   The Commissioner must give the notice before the later of:

  (a)   5 years after the income year to which the return relates; and

  (b)   the end of the period during which the company is required by section   262A of the Income Tax Assessment Act 1936 to retain records in relation to that income year.