Commonwealth Consolidated Acts Commonwealth Consolidated ActsIncome Tax Assessment Act 1997
1 Subsection 701 - 55(5C)
Repeal the subsection, substitute:
Rights to future amounts
(5C) If:
(a) the asset's tax cost is set because an entity becomes a * subsidiary member of a * consolidated group at the particular time; and
(b) section 716 - 410 (rights to amounts that are expected to be included in assessable income) covers the asset at the particular time; and
(c) the asset is not a * non - deductible right to future income;
the expression means that section 716 - 405 may apply in relation to the asset after the particular time.
Consumable stores
(5D) If:
(a) the asset's tax cost is set because an entity becomes a * subsidiary member of a * consolidated group at the particular time; and
(b) the asset is consumable stores;
the expression means that, for the purposes of section 8 - 1, the * head company of the group is taken to have incurred an outgoing at the particular time in acquiring the asset equal to the asset's * tax cost setting amount.
2 Subsection 701 - 55(6)
Repeal the subsection, substitute:
Other provisions
(6) If any provision of this Act that is not mentioned above is to apply in relation to the asset, the expression means that the provision applies as if the asset's cost at that time were equal to its * tax cost setting amount.
Note: For specific clarifications of the operation of this subsection in relation to bad debts, see Subdivision 716 - S.
3 Section 701 - 56 (heading)
Repeal the heading, substitute:
701 - 56 Non - application of subsection 701 - 55(6) to certain assets
4 Subsections 701 - 56(1) and (2)
Repeal the subsections.
5 Subsection 701 - 58(2)
Omit ", (5C)", substitute ", (5C), (5D)".
6 After section 701 - 61
Insert:
701 - 63 Asset forming part of goodwill, right to future income, etc.
(1) Subsection ( 2) applies if an entity (the joining entity ) became a subsidiary member of a * consolidated group at a time (the joining time ).
(2) For the purposes of this Part (other than this section):
(a) treat goodwill of a business of the joining entity as a single asset; and
(b) treat an asset of that business of the joining entity that is an * asset forming part of goodwill as being part of that single asset; and
(c) as a result of paragraph ( b), do not treat an asset of that business of the joining entity that is an asset forming part of goodwill as a separate asset.
(3) An asset forming part of goodwill means any of the following:
(a) an intangible asset, the value of which is attributable to expected future profits from * life insurance policies or * general insurance policies;
(b) a customer relationship asset, know - how asset or other accounting intangible asset, that is not any of the following:
(i) a * CGT asset;
(ii) a * revenue asset;
(iii) a * depreciating asset;
(iv) * trading stock;
(v) a thing that is or is part of a * Division 230 financial arrangement;
(vi) goodwill;
(vii) an excluded asset for the purposes of section 705 - 35;
(c) a * non - deductible right to future income.
(4) A non - deductible right to future income is a * right to future income that is not an * unbilled income asset.
(5) A right to future income is a valuable right (including a contingent right) to receive an amount for the performance of work or services or the provision of goods if:
(a) the valuable right forms part of a contract or agreement; and
(b) the * market value of the valuable right (taking into account all the obligations and conditions relating to the right) is greater than nil; and
(c) the valuable right is neither a * Division 230 financial arrangement nor part of a Division 230 financial arrangement.
(6) An asset that is a * right to future income is an unbilled income asset if:
(a) the asset:
(i) is in respect of work (but not goods) that has been performed, or partially performed, by an entity for another entity; or
(ii) is in respect of goods (other than * trading stock) or services that have been provided, by an entity to another entity; and
(b) a recoverable debt has not yet arisen in respect of the work, goods or services.
7 Section 701 - 90
Repeal the section.
8 Paragraph 705 - 25(5)(d)
Omit "a right that is an asset covered by section 716 - 410 (rights to future amounts that are expected to be included in assessable income)", substitute "a right that is an * unbilled income asset".
9 Section 716 - 405
Repeal the section, substitute:
716 - 405 Tax cost setting and rights to future income--deduction
(1) This section applies if:
(a) an entity (the joining entity ) became a subsidiary member of a * consolidated group at a time (the joining time ); and
(b) subsection 701 - 55(5C) applies in relation to the asset at the joining time.
Note: Subsection 701 - 55(5C) deals with assets covered by section 716 - 410 (Rights to amounts that are expected to be included in assessable income after joining time).
(2) An entity qualified for a deduction under subsection ( 5) for the asset for an income year ending after the joining time:
(a) if the entity is the * head company of the group and the entity expects that a recoverable debt will arise in respect of the work, goods or services mentioned in subsection 701 - 63(6) in relation to the asset within 12 months after the joining time--can deduct, for that income year, the * unexpended tax cost setting amount for the asset; or
(b) if paragraph ( a) does not apply and one or more recoverable debts arise, in that income year, in respect of the work, goods or services mentioned in subsection 701 - 63(6) in relation to the asset--can deduct, for that income year, the lesser of:
(i) the unexpended tax cost setting amount for the asset for that income year; and
(ii) the total of those recoverable debts; or
(c) if paragraphs ( a) and (b) do not apply-- cannot deduct an amount under this section in respect of the asset for that income year.
(4) The unexpended tax cost setting amount for the asset for an income year is the * tax cost setting amount for the asset, reduced by:
(a) the amounts (if any) of all deductions under this section in respect of the asset for previous income years ending after the joining time; and
(b) in determining the amount of a deduction under this section in respect of the asset for that income year for an entity that ceased to be a * subsidiary member of the group in that income year--the amount (if any) that the * head company of the group can deduct under this section in respect of the asset for that income year.
(5) An entity is qualified for a deduction under this subsection for an income year for the asset if:
(a) the entity:
(i) is the * head company of the group; and
(ii) held the asset at a time in that income year (whether or not because of the operation of subsection 701 - 1(1) (the single entity rule)); or
(b) the entity:
(i) held the asset at a time in that income year; and
(ii) ceased to be a * subsidiary member of the group in that income year or an earlier income year.
(6) An amount deducted under this section:
(a) is not to be deducted under any other provision of this Act; and
(b) is not to be taken into account in determining an amount that is included in the assessable income of any entity qualified for a deduction under subsection ( 5) for any income year for the asset; and
(c) is not to be taken into account in determining an amount of a deduction of any entity qualified for a deduction under subsection ( 5) for any income year for the asset; and
(d) despite paragraphs ( b) and (c), is taken never to have been included in any of the elements of the * cost base of the asset.
10 Section 716 - 410
Repeal the section, substitute:
716 - 410 Rights to amounts that are expected to be included in assessable income after joining time
This section covers an asset at a time if:
(a) the asset is a * right to future income; and
(b) the asset is held by an entity just before the time (the joining time ) it became a * subsidiary member of a * consolidated group; and
(c) it is reasonable to expect that an amount attributable to the asset will be included in the assessable income of the entity or any other entity after the joining time; and
(d) Division 230 does not apply in relation to the asset (disregarding section 230 - 455).
11 Subsection 995 - 1(1)
Insert:
"asset forming part of goodwill" has the meaning given by subsection 701 - 63(3).
12 Subsection 995 - 1(1)
Insert:
"non-deductible right to future income" has the meaning given by subsection 701 - 63(4).
13 Subsection 995 - 1(1)
Insert:
"right to future income" has the meaning given by subsection 701 - 63(5).
14 Subsection 995 - 1(1)
Insert:
"unbilled income asset" has the meaning given by subsection 701 - 63(6).
Income Tax Assessment Act 1997
15 Subsection 701 - 55(5C)
Repeal the subsection, substitute:
Rights to future amounts
(5C) If:
(a) the asset's tax cost is set because an entity becomes a * subsidiary member of a * consolidated group at the particular time; and
(b) section 716 - 410 (rights to amounts that are expected to be included in assessable income) covers the asset at the particular time; and
(c) the asset is not a * non - deductible right to future income in relation to the entity;
the expression means that section 716 - 405 may apply in relation to the asset after the particular time.
16 Subsection 701 - 55(6)
Repeal the subsection, substitute:
Other provisions
(6) If any provision of this Act that is not mentioned above is to apply in relation to the asset by including an amount in assessable income, or by allowing an amount as a deduction, in a way that brings into account (directly or indirectly) any of the following amounts:
(a) the cost of the asset;
(b) outgoings incurred, or amounts paid, in respect of the asset;
(c) expenditure in respect of the asset;
(d) an amount of a similar kind in respect of the asset;
the expression means that the provision applies, for the purpose of determining the amount included in assessable income or the amount of the deduction, as if the cost, outgoing, expenditure or other amount had been incurred or paid to acquire the asset at the particular time for an amount equal to its * tax cost setting amount.
Note 1: This subsection modifies the application of the provision only for the purpose of determining the amount included in assessable income or the amount of the deduction. Therefore:
(a) the acquisition mentioned in this subsection is recognised only for that purpose; and
(b) apart from the things mentioned in subsection 701 - 56(1), that acquisition does not affect the operation of section 701 - 5 (the entry history rule) in relation to the asset for other purposes.
Note 2: For specific clarifications of the operation of this subsection in relation to bad debts, see Subdivision 716 - S.
17 Section 701 - 56 (heading)
Repeal the heading, substitute:
701 - 56 Setting the tax cost of an asset--subsection 701 - 55(6)
18 Before subsection 701 - 56(3)
Insert:
Entry history rule
(1) To avoid doubt, if subsection 701 - 55(6) applies in relation to an asset at the time (the joining time ) an entity (the joining entity ) became a * subsidiary member of a * consolidated group, the things that are taken to have happened in relation to the * head company of the group under section 701 - 5 (the entry history rule) do not include:
(a) the cost, outgoing, expenditure or other amount incurred or paid to acquire the asset by the joining entity; and
(b) whether the cost, outgoing, expenditure or other amount incurred or paid by the joining entity to acquire the asset has been deducted by the joining entity before the joining time.
Trading stock
(2) Subsection 701 - 55(6) does not apply in relation to an asset if it is * trading stock.
19 Section 701 - 63
Repeal the section, substitute:
701 - 63 Asset forming part of goodwill, right to future income, etc.
(1) Subsection ( 2) applies if an entity (the joining entity ) became a subsidiary member of a * consolidated group at a time (the joining time ).
(2) For the purposes of this Part (other than this section):
(a) treat goodwill of a business of the joining entity as a single asset; and
(b) treat an asset of that business of the joining entity that is an * asset forming part of goodwill as being part of that single asset; and
(c) as a result of paragraph ( b), do not treat an asset of that business of the joining entity that is an asset forming part of goodwill as a separate asset.
(3) An asset forming part of goodwill means any of the following:
(b) a customer relationship asset, know - how asset or other accounting intangible asset, that is not any of the following:
(i) a * CGT asset;
(ii) a * revenue asset;
(iii) a * depreciating asset;
(iv) * trading stock;
(v) a thing that is or is part of a * Division 230 financial arrangement;
(vi) goodwill;
(vii) an excluded asset for the purposes of section 705 - 35;
(c) a * non - deductible right to future income.
(4) A * right to future income that is a right of an entity under a contract or agreement with another entity (the customer) is a non - deductible right to future income in relation to the entity to the extent that the value of the right to future income:
(a) is contingent on the renewal of the contract or agreement; or
(b) is attributable to a period (if any) during which the customer can unilaterally cancel the contract or agreement without paying compensation or a penalty; or
(c) if there is a period during which the customer can unilaterally cancel the contract or agreement, but must pay compensation or a penalty--is attributable to that period, but not to that compensation or penalty.
(5) A right to future income is a valuable right (including a contingent right) to receive an amount for the performance of work or services or the provision of goods (other than * trading stock) if:
(a) the valuable right forms part of a contract or agreement; and
(b) the * market value of the valuable right (taking into account all the obligations and conditions relating to the right) is greater than nil; and
(c) the valuable right is neither a * Division 230 financial arrangement nor a part of a Division 230 financial arrangement.
20 At the end of Division 701
Add:
701 - 90 Right to future income treated as separate asset
(2) Subject to subsection 701 - 63(2), for the purposes of this Part, treat a * right to future income as a separate asset.
(3) For the purposes of this Part, if:
(a) a * right to future income is treated as a separate asset under subsection ( 2); and
(b) the contract or agreement mentioned in subsection 701 - 63(5) in respect of the right to future income also includes one or more other rights;
for the purposes of this Part, treat the contract or agreement (excluding the right to future income) as a separate asset.
(4) For the purposes of this Part:
(a) take into account all the obligations and conditions relating to a * right to future income treated as a separate asset under subsection ( 2) in working out the * market value of that separate asset; and
(b) if a contract or agreement (excluding the right to future income) is treated as a separate asset under subsection ( 3)--take into account all the obligations and conditions relating to each right (other than the right to future income) that forms part of the contract or agreement in working out the market value of that separate asset.
21 Paragraph 705 - 25(5)(d)
Omit "a right that is an * unbilled income asset", substitute "a right that is an asset covered by section 716 - 410 (rights to amounts that are expected to be included in assessable income)".
22 After section 705 - 56
Insert:
705 - 56A Modification for tax cost setting in relation to certain rights to future income
(1) This section applies if, just before the joining time:
(a) the joining entity * holds an asset; and
(b) under the terms of a contract or agreement, the joining entity holds a * right to future income arising from the asset; and
(c) the right to future income is not a * non - deductible right to future income in relation to the joining entity.
(2) Subsection ( 3) applies if the sum of:
(a) the * market value of the asset at the joining time (having regard to the * right to future income); and
(b) the market value of the right to future income at the joining time;
exceeds the market value of the asset at the joining time (disregarding the right to future income).
(3) For the purposes of paragraph 705 - 35(1)(c), treat the * market value of the * right to future income as the excess mentioned in subsection ( 2).
(4) If subsection ( 3) does not apply:
(a) the * right to future income is not taken into account under paragraph 705 - 35(1)(b) or (c); and
(b) the right to future income's * tax cost setting amount is taken to be nil.
23 Section 716 - 405
Repeal the section, substitute:
716 - 405 Tax cost setting and rights to future income--deduction
(1) This section applies if:
(a) an entity (the joining entity ) became a subsidiary member of a * consolidated group at a time (the joining time ); and
(b) subsection 701 - 55(5C) applies in relation to the asset at the joining time.
Note: Subsection 701 - 55(5C) deals with assets covered by section 716 - 410 (Rights to amounts that are expected to be included in assessable income after joining time).
(2) An entity qualified for a deduction under subsection ( 5) for the asset for an income year ending after the joining time can deduct, for that income year:
(a) unless paragraph ( b) applies--the amount determined under subsection ( 3A); or
(b) if it is reasonable to expect that no amount will be included in the assessable income of an entity qualified for a deduction under subsection ( 5) for the asset for any later income year--the * unexpended tax cost setting amount for the asset for that income year.
(3) Paragraph ( 2)(b) does not apply in relation to an entity qualified for a deduction under subsection ( 5) for the asset for that income year if:
(a) the entity is the * head company of the group; and
(b) another entity ceased to be a * subsidiary member of the group in that income year; and
(c) the other entity can deduct an amount under subsection ( 2) for that income year because it is also qualified for a deduction under subsection ( 5) for the asset for that income year.
(3A) For the purposes of paragraph ( 2)(a), the amount is the lesser of the following:
(a) the * unexpended tax cost setting amount for the asset for that income year;
(b) the unexpended tax cost setting amount for the asset for the first income year ending after the joining time, divided by the lesser of:
(i) 10; or
(ii) if the contract or agreement giving rise to the * right to future income mentioned in paragraph 716 - 410(a) is for a specified period--the number of days in that period that end after the joining time, divided by 365 and rounded upwards to the nearest whole number.
(4) The unexpended tax cost setting amount for the asset for an income year is the * tax cost setting amount for the asset, reduced by:
(a) the amounts (if any) of all deductions under this section in respect of the asset for previous income years ending after the joining time; and
(b) in determining the amount of a deduction under this section in respect of the asset for that income year for an entity that ceased to be a * subsidiary member of the group in that income year--the amount (if any) that the * head company of the group can deduct under this section in respect of the asset for that income year.
(5) An entity is qualified for a deduction under this subsection for an income year for the asset if:
(a) the entity:
(i) is the * head company of the group; and
(ii) held the asset at a time in that income year (whether or not because of the operation of subsection 701 - 1(1) (the single entity rule)); or
(b) the entity:
(i) held the asset at a time in that income year; and
(ii) ceased to be a * subsidiary member of the group in that income year or an earlier income year.
(6) An amount deducted under this section:
(a) is not to be deducted under any other provision of this Act; and
(b) is not to be taken into account in determining an amount that is included in the assessable income of any entity qualified for a deduction under subsection ( 5) for any income year for the asset; and
(c) is not to be taken into account in determining an amount of a deduction of any entity qualified for a deduction under subsection ( 5) for any income year for the asset; and
(d) despite paragraphs ( b) and (c), is taken never to have been included in any of the elements of the * cost base of the asset.
24 At the end of paragraph 716 - 410(a)
Add:
Note: Such a right might be treated as a separate asset for the purposes of this Part (see subsection 701 - 90(2)).
25 Subsection 995 - 1(1) (definition of unbilled income asset )
Repeal the definition.
Income Tax Assessment Act 1997
26 Section 12 - 5 (table item headed "consolidated groups and MEC groups")
Omit:
rights to future income ....................... | 716 - 405 |
27 Subsection 701 - 10(7)
Repeal the subsection.
28 Subsection 701 - 55(5C)
Repeal the subsection, substitute:
WIP amount assets
(5C) If:
(a) the asset's tax cost is set because an entity becomes a * subsidiary member of a * consolidated group at the particular time; and
(b) the asset is a * WIP amount asset;
the expression means that section 25 - 95 applies as if the * head company had paid a * work in progress amount for the income year in which the particular time occurs equal to the * tax cost setting amount of the asset.
29 Subsection 701 - 55(6) (note 1)
Repeal the note.
30 Section 701 - 56 (heading)
Repeal the heading, substitute:
701 - 56 Application of subsection 701 - 55(6)
31 Subsections 701 - 56(1) and (2)
Repeal the subsections, substitute:
(1) Subsection ( 2) applies in relation to each asset that would be an asset of an entity at the time (the joining time ) it becomes a * subsidiary member of a * consolidated group, assuming that subsection 701 - 1(1) (the single entity rule) did not apply.
(1A) Subsection ( 2) applies only to the extent necessary for the purposes of subsection 701 - 55(6) to determine whether a provision of this Act is to apply in relation to each of those assets on and after the joining time.
(1B) Subsection ( 2) applies despite section 701 - 5 (the entry history rule).
(2) Treat the * head company as having acquired each of those assets at the joining time as part of acquiring the business of the joining entity as a going concern.
32 Paragraph 701 - 56(3)(d)
Omit ", other than section 40 - 880 (Business related costs)".
33 Section 701 - 63
Repeal the section, substitute:
701 - 63 Right to future income and WIP amount asset
(5) A right to future income is a valuable right (including a contingent right) to receive an amount if:
(a) the valuable right forms part of a contract or agreement; and
(b) the * market value of the valuable right (taking into account all the obligations and conditions relating to the right) is greater than nil; and
(c) the valuable right is neither a * Division 230 financial arrangement nor a part of a Division 230 financial arrangement; and
(d) it is reasonable to expect that an amount attributable to the right will be included in the assessable income of any entity at a later time.
(6) WIP amount asset means an asset that is in respect of work (but not goods) that has been partially performed by a recipient mentioned in paragraph 25 - 95(3)(b) for a third entity but not yet completed to the stage where a recoverable debt has arisen in respect of the completion or partial completion of the work.
34 After section 701 - 65
Insert:
701 - 67 Assets in this Part are CGT assets, etc.
This Part applies to an asset only if the asset is one or more of the following:
(a) a * CGT asset;
(b) a * revenue asset;
(c) a * depreciating asset;
(d) * trading stock;
(e) a thing that is or is part of a * Division 230 financial arrangement.
35 Section 701 - 90
Repeal the section.
36 Paragraph 705 - 25(5)(d)
Repeal the paragraph, substitute:
(d) a * right to future income (other than a * WIP amount asset).
37 Subsection 705 - 35(1)
Omit "or an asset (an excluded asset ) covered by subsection ( 2)".
38 Paragraph 705 - 35(1)(c)
Omit "(other than excluded assets)".
39 Subsection 705 - 35(2)
Repeal the subsection.
40 Subsection 705 - 40(2)
Omit "other than excluded assets".
41 Paragraph 705 - 40(3)(c)
Omit "(other than excluded assets)".
42 Section 705 - 56A
Repeal the section.
43 Section 716 - 405
Repeal the section.
44 Section 716 - 410
Repeal the section.
45 Subsection 995 - 1(1) (definition of asset forming part of goodwill )
Repeal the definition.
46 Subsection 995 - 1(1) (definition of non - deductible right to future income )
Repeal the definition.
47 Subsection 995 - 1(1) (definition of unexpended tax cost setting amount )
Repeal the definition.
48 Subsection 995 - 1(1)
Insert:
"WIP amount asset" has the meaning given by subsection 701 - 63(6).
49 Interpretation
In this Part:
2010 Act means the Tax Laws Amendment (2010 Measures No. 1) Act 2010 .
interim rules means the amendments made by Parts 1 and 2 of this Schedule.
original 2002 law means the Income Tax Assessment Act 1997 (disregarding amendments to that Act made by Division 1 of Part 1 and Division 2 of Part 11 of Schedule 5 to the 2010 Act and by this Schedule).
original 2010 law means the Income Tax Assessment Act 1997 (as amended by the 2010 Act, but disregarding amendments made by this Schedule).
pre rules means the amendments made by Part 1 of this Schedule.
prospective rules means the amendments made by Parts 1, 2 and 3 of this Schedule.
50 Main application rules
(1) The pre rules, interim rules or prospective rules apply to an assessment of the head company of a consolidated group or MEC group for an income year in respect of an entity (the joining entity ) that becomes a member of the group at a time (the joining time ), in accordance with subitems ( 2), (3), (4) and (5).
(2) The pre rules apply, for the income year in respect of the joining entity, if:
(a) the joining time is before 12 May 2010; or
(b) the arrangement under which the joining entity joined the group commenced (see item 52) before 10 February 2010.
(3) Despite subitem ( 2), the interim rules apply, for the income year in respect of the joining entity, if:
(a) both of these conditions are satisfied:
(i) apart from this subitem, the pre rules would apply, for the income year in respect of the joining entity, in accordance with subitem ( 2);
(ii) the head company's latest notice of assessment, for the income year, that relates to the application of the original 2010 law in respect of the joining entity, was served on the head company by the Commissioner on or after 12 May 2010 and on or before 30 March 2011; or
(b) both of these conditions are satisfied:
(i) the joining time is on or after 12 May 2010;
(ii) the arrangement under which the joining entity joined the group commenced (see item 52) on or after 10 February 2010 and on or before 30 March 2011.
(4) The prospective rules apply, for the income year in respect of the joining entity, if:
(a) the joining time is on or after 31 March 2011; and
(b) neither subitem ( 2) nor (3) applies.
(5) Despite subitems ( 2) and (3), the original 2002 law applies, for the income year in respect of the joining entity, if the head company's latest notice of assessment, for the income year, that relates to the application of subsection 701 - 55(6) of the original 2002 law in respect of the joining entity, was served on the head company by the Commissioner before 12 May 2010.
(6) Subitem ( 5) does not apply if:
(a) the head company requests an amendment of the assessment and the amendment relates to the application of subsection 701 - 55(6) of the original 2002 law in respect of the joining entity; or
(b) the amendment of the assessment, if made:
(i) would relate to an asset of a kind mentioned in paragraph 701 - 63(3)(b) of the original 2010 law as amended by the pre rules; and
(ii) would not be consistent with the outcome that arises under the pre rules for assets of that kind.
51 Special rule for private rulings etc.
(1) This item applies to:
(a) a private ruling issued before 31 March 2011; or
(b) a written advice given by the Commissioner before 31 March 2011 under an Annual Compliance Arrangement;
to the extent that the ruling or advice has effect in relation to the application of subsection 701 - 55(5C) or (6) of the original 2010 law in respect of the joining entity mentioned in item 50.
(2) Item 50 does not affect that effect of the ruling or advice.
(3) However, if the head company requests an amendment of the assessment mentioned in item 50 after the issue of the ruling or the giving of the advice, this item does not apply to the extent that the request is inconsistent with or contrary to the ruling or advice.
52 Commencement of arrangement
(1) Subitems ( 2), (3) and (4) specify, for the purpose of this Part, the time of commencement of the arrangement under which the joining entity mentioned in item 50 joined the group.
(2) If the arrangement is or relates to a takeover bid (within the meaning of the Corporations Act 2001 ) the time is when:
(a) for an off - market bid (within the meaning of that Act)--step 4 of the table in subsection 633(1) of that Act is completed; or
(b) for a market bid (within the meaning of that Act)--step 2 of the table in subsection 635(1) of that Act is completed.
(3) If a court orders, under subsection 411(1) of the Corporations Act 2001 :
(a) a meeting or meetings of a company's members about the arrangement; or
(b) a meeting or meetings of one or more classes of a company's members about the arrangement;
the time is when the application for the order was made.
(4) If subitem ( 2) or (3) does not apply, the time is when the decision to enter into the arrangement was made.
53 No overpayments interest arises from pre rules
(1) Disregard a deduction covered by subitem (2) in working out:
(a) the amount (if any) of an excess mentioned in paragraph 8G(1)(d) of the Taxation (Interest on Overpayments and Early Payments) Act 1983 ; and
(b) the amount (if any) of an excess mentioned in paragraph 8G(2)(c) of that Act; and
(c) the extent (if any) to which an amount of relevant tax is overpaid as mentioned in paragraph 9(1)(b) of that Act.
(2) A deduction is covered by this subitem if the pre rules apply in working out the amount of the deduction.
(3) This item does not apply to the extent that its application would affect an amount of interest paid by the Commissioner of Taxation under the Taxation (Interest on Overpayments and Early Payments) Act 1983 before 25 November 2011.
54 No shortfall interest charge or shortfall penalty arises from pre or interim rules
(1) Disregard a deduction covered by subitem (3) in working out under subsection 280 - 100(1) in Schedule 1 to the Taxation Administration Act 1953 the extent (if any) to which an entity is liable to pay an additional amount of income tax because of an amended assessment.
(2) Disregard a deduction covered by subitem (3) in working out the amount (if any) of a shortfall amount under subsection 284 - 80(1) in that Schedule.
(3) A deduction is covered by this subitem if the pre rules or interim rules apply in working out the amount of the deduction.
Notes to the Tax Laws Amendment (2012 Measures No. 2) Act 2012
Note 1
The Tax Laws Amendment (2012 Measures No. 2) Act 2012 as shown in this compilation comprises Act No. 99 , 2012 amended as indicated in the Tables below.
Table of Acts
Act | Number | Date | Date of commencement | Application, saving or transitional provisions |
Tax Laws Amendment (2012 Measures No. 2) Act 2012 | 99, 2012 | 29 June 2012 | See s. 2(1) |
|
Tax Laws Amendment (2012 Measures No. 4) Act 2012 | 142 , 2012 | 28 Sept 2012 | Schedule 3: Royal Assent | -- |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted | |
Provision affected | How affected |
Schedule 3 |
|
Part 4 |
|
Item 53 ................. | ad. No. 142 , 2012 |
Item 54 ................. | ad. No. 142 , 2012 |