INCOME TAX ASSESSMENT ACT 1936
Table of Provisions
PART I--PRELIMINARY
- 1 Short title
- 6 Interpretation
- 6AB Foreign income and foreign tax
- 6B Income beneficially derived
- 6BA Taxation treatment of certain shares
- 6C Source of royalty income derived by a non - resident
- 6CA Source of natural resource income derived by a non - resident
- 6D Some tax offsets under the 1997 Assessment Act are treated as credits
- 6F Dual resident investment company
- 6H Recognised small credit unions, recognised medium credit unions and recognised large credit unions
- 7B Application of the Criminal Code
PART II--ADMINISTRATION
- 8 Commissioner
- 14 Annual report
PART III--LIABILITY--TO TAXATION
Division 1--General
- 18 Accounting period
- 18A Accounting periods for VCLPs, ESVCLPs, AFOFs and VCMPs
- 21 Where consideration not in cash
- 21A Non - cash business benefits
- 23AA Income of persons connected with certain projects of United States Government
- 23AB Income of certain persons serving with an armed force under the control of the United Nations
- 23AD Exemption of pay and allowances of Defence Force members performing certain overseas duty
- 23AF Exemption of certain income derived in respect of approved overseas projects
- 23AG Exemption of income earned in overseas employment
- 23AH Foreign branch income of Australian companies not assessable
- 23AI Amounts paid out of attributed income not assessable
- 23AK Amounts paid out of attributed foreign investment fund income not assessable
- 23B Reduction of disposal consideration if FIF attributed income not distributed
- 23G Exemption of interest received by credit unions
- 23K Substitution of certain securities
- 23L Certain benefits in the nature of income not assessable
Division 1AB--Certain State/Territory bodies exempt from income tax
Subdivision A--Exemption for certain State/Territory bodies- 24AK Key principle
- 24AL Diagram--guide to work out if body is exempt under this Division
- 24AM Certain STBs exempt from tax
- 24AN Certain STBs not exempt from tax under this Division
- 24AO First way in which a body can be an STB
- 24AP Second way in which a body can be an STB
- 24AQ Third way in which a body can be an STB
- 24AR Fourth way in which a body can be an STB
- 24AS Fifth way in which a body can be an STB
- 24AT What do excluded STB, government entity and Territory mean?
- 24AU Governor, Minister and Department Head taken to be a government entity
- 24AV Regulations prescribing excluded STBs Subdivision B--Body ceasing to be an STB
- 24AW Body ceasing to be an STB
- 24AX Special provisions relating to capital gains and losses
- 24AY Losses from STB years not carried forward
- 24AYA Effect of unfunded superannuation liabilities
- 24AZ Meaning of period and prescribed excluded STB
Division 2--Income
Subdivision A--Assessable income generally- 25A Assessable income to include certain profits
- 26AB Assessable income--premium for lease
- 26AF Assessable income to include value of benefits received from or in connection with former paragraph 23(ja) funds or former section 23FB funds
- 26AFA Assessable income to include value of certain benefits received from or in connection with former section 23F funds
- 26AG Certain film proceeds included in assessable income
- 26AH Bonuses and other amounts received in respect of certain short - term life assurance policies
- 26AJ Investment - related lottery winnings to be included in assessable income
- 26BB Assessability of gain on disposal or redemption of traditional securities
- 26BC Securities lending arrangements
- 26E Income from RSAs Subdivision AA--Non-superannuation annuities etc.
- 27H Assessable income to include annuities and superannuation pensions Subdivision D--Dividends
- 43A Subdivision has effect subject to provisions of Division 216 of the Income Tax Assessment Act 1997
- 43B Application of Subdivision to non - share dividends
- 44 Dividends
- 45 Streaming of bonus shares and unfranked dividends
- 45A Streaming of dividends and capital benefits
- 45B Schemes to provide certain benefits
- 45BA Effect of determinations under section 45B for demerger benefits
- 45C Effect of determinations under sections 45A and 45B for capital benefits
- 45D Determinations under sections 45A, 45B and 45C
- 46FA Deduction for dividends on - paid to non - resident owner
- 46FB Unfranked non - portfolio dividend account
- 47 Distributions by liquidator
- 47A Distribution benefits--CFCs
Division 3--Deductions
Subdivision A--General- 51AAA Deductions not allowable in certain circumstances
- 51AD Deductions not allowable in respect of property used under certain leveraged arrangements
- 51AEA Meal entertainment--election under section 37AA of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method
- 51AEB Meal entertainment--election under section 37CA of Fringe Benefits Tax Assessment Act 1986 to use the 12 week register method
- 51AEC Entertainment facility--election under section 152B of Fringe Benefits Tax Assessment Act 1986 to use 50/50 split method
- 51AF Car expenses incurred by employee
- 51AGA No deduction to employee for certain car parking expenses
- 51AH Deductions not allowable where expenses incurred by employee are reimbursed
- 51AJ Deductions not allowable for private component of contributions for fringe benefits etc.
- 51AK Agreements for the provision of non - deductible non - cash business benefits
- 52 Loss on property acquired for profit - making
- 52A Certain amounts disregarded in ascertaining taxable income
- 63 Bad debts
- 63D Bad debts etc. of money - lenders not allowable deductions where attributable to listed country or unlisted country branches
- 63E Debt/equity swaps
- 63F Limit on deductions where debt write offs and debt/equity swaps occur
- 63G Bad debts etc. of trust not allowable in certain circumstances
- 65 Payments to associated persons and relatives
- 70B Deduction for loss on disposal or redemption of traditional securities
- 73A Expenditure on scientific research
- 73AA Section 73A roll - over relief in the case of certain CGT roll - overs
- 78A Certain gifts not to be allowable deductions
PART III--LIABILITY--TO TAXATION
Division 3--Deductions
- 79A Rebates for residents of isolated areas
- 79B Rebates for members of Defence Force serving overseas
- 82 Double deductions Subdivision D--Losses and outgoings incurred under certain tax avoidance schemes
- 82KH Interpretation
- 82KJ Deduction not allowable in respect of certain pre - paid outgoings
- 82KK Schemes designed to postpone tax liability
- 82KL Tax benefit not allowable in respect of certain recouped expenditure Subdivision H--Period of deductibility of certain advance expenditure
- 82KZL Interpretation
- 82KZLA Subdivision does not apply to financial arrangements to which Subdivision 250 - E applies
- 82KZLB How this Subdivision applies to deductible R&D expenditure incurred to associates in earlier income years
- 82KZM Expenditure by small and medium business entities and individuals incurring non - business expenditure
- 82KZMA Application of section 82KZMD
- 82KZMD Business expenditure and non - business expenditure by non - individual
- 82KZME Expenditure under some agreements
- 82KZMF Proportional deduction
- 82KZMG Deductions for certain forestry expenditure
- 82KZMGA Deductions for certain forestry expenditure
- 82KZMGB CGT event in relation to interest in 82KZMG agreement
- 82KZN Transfer etc. of rights under agreement
- 82KZO Partnership changes where entire interest in agreement rights is not transferred
Division 3A--Convertible notes
- 82LA Application of Division
- 82L Interpretation
- 82M New loans and replacement loans
- 82P Bonus share allotments
- 82Q Classes of shares
- 82R Interest on certain convertible notes not to be an allowable deduction
- 82SA Interest on certain convertible notes to be an allowable deduction--where loan made on or after 1 January 1976
- 82T Value of shares
Division 5--Partnerships
- 90 Interpretation
- 91 Liability of partnerships
- 92 Income and deductions of partner
- 92A Deductions in respect of outstanding subsection 92(2AA) amounts
- 94 Partner not having control and disposal of share in partnership income
Division 5A--Income of certain limited partnerships
Subdivision A--Preliminary- 94A Object
- 94B Interpretation
- 94C Continuity of limited partnership not affected by changes in composition Subdivision B--Corporate limited partnerships
- 94D Corporate limited partnerships
- 94E Continuity of business test
- 94F Change in composition of limited partnership--election that partnership not be treated as an eligible limited partnership
- 94G Continuity of ownership test Subdivision C--Corporate tax modifications applicable to corporate limited partnerships
- 94H Corporate tax modifications applicable to corporate limited partnerships
- 94J Company includes corporate limited partnership
- 94K Partnership does not include corporate limited partnership
- 94L Dividend includes distribution of corporate limited partnership
- 94M Drawings etc. deemed to be dividends paid out of profits
- 94N Private company does not include corporate limited partnership
- 94P Share includes interest in corporate limited partnership
- 94Q Shareholder includes partner in corporate limited partnership
- 94R Liquidator may include partner in corporate limited partnership
- 94S Continuity of corporate limited partnership not affected by changes in composition
- 94T Residence of corporate limited partnership
- 94U Incorporation
- 94V Obligations and offences
- 94X Modification of loss provisions
Division 6--Trust income
- 95AAA Simplified outline of the relationship between this Division, Division 6E and Subdivisions 115 - C and 207 - B of the Income Tax Assessment Act 1997
- 95AAB Adjustments under Subdivision 115 - C or 207 - B of the Income Tax Assessment Act 1997 --references in this Act to assessable income under section 97, 98A or 100
- 95AAC Adjustments under Subdivision 115 - C or 207 - B of the Income Tax Assessment Act 1997 --references in this Act to liabilities under section 98, 99 or 99A
- 95AAD Division does not apply in relation to AMIT
- 95 Interpretation
- 95AB Modifications for special disability trusts
- 95A Special provisions relating to present entitlement
- 95B Certain beneficiaries deemed not to be under legal disability
- 96 Trustees
- 97 Beneficiary not under any legal disability
- 97A Beneficiaries who are owners of farm management deposits
- 98 Liability of trustee
- 98A Non - resident beneficiaries assessable in respect of certain income
- 98B Deduction from beneficiary's tax
- 99 Certain trust income to be taxed as income of an individual
- 99A Certain trust income to be taxed at special rate
- 99B Receipt of trust income not previously subject to tax
- 99C Determining whether property is applied for benefit of beneficiary
- 99D Refund of tax to non - resident beneficiary
- 99E Later trust not taxed on income already taxed under subsection 98(4)
- 99G Amounts covered by withholding requirement
- 99GA Amounts covered by sovereign immunity exemption
- 99H Late payments
- 100 Beneficiary assessable in respect of certain trust income
- 100AA Failure to pay or notify present entitlement of exempt entity
- 100AB Adjusted Division 6 percentage exceeding benchmark percentage: present entitlement of exempt entity
- 100A Present entitlement arising from reimbursement agreement
- 101 Discretionary trusts
- 101A Income of deceased received after death
- 102 Revocable trusts
Division 6AAA--Special provisions relating to non-resident trust estates etc.
Subdivision A--Preliminary- 102AAA Object of Division
- 102AAB Interpretation
- 102AAC Each listed country and unlisted country to be treated as a separate foreign country
- 102AAD Subject to tax --application of subsection 324(2)
- 102AAE Listed country trust estates
- 102AAF Public unit trusts
- 102AAG When entity is in a position to control a trust estate
- 102AAH Non - resident family trusts
- 102AAJ Transfer of property or services
- 102AAK Deemed transfers of property or services to trust estate
- 102AAL Division not to apply to transfers by trustees of deceased estates Subdivision B--Payment of interest by taxpayer on distributions from certain non-resident trust estates
- 102AAM Payment of interest by taxpayer on distributions from certain non - resident trust estates
- 102AAN Collection etc. of interest Subdivision D--Accruals system of taxation of certain non-resident trust estates
- 102AAS Object of Subdivision
- 102AAT Accruals system of taxation--attributable taxpayer
- 102AAU Attributable income of a trust estate
- 102AAV Double tax agreements to be disregarded
- 102AAW Certain provisions to be disregarded in calculating attributable income
- 102AAY Modified application of trading stock provisions
- 102AAZ Modified application of depreciation provisions
- 102AAZB General modifications--CGT
- 102AAZBA Modified application of CGT--effect of certain changes of residence
- 102AAZC Modified application of loss provisions--pre - 1990 - 91 losses
- 102AAZD Assessable income of attributable taxpayer to include attributable income of trust estate to which taxpayer has transferred property or services
- 102AAZE Accruals system of taxation does not apply to small amounts
- 102AAZF Only resident partners, beneficiaries etc. liable to be assessed as a result of attribution
- 102AAZG Keeping of records
Division 6AA--Income of certain children
- 102AA Interpretation
- 102AB Application of Division
- 102AC Persons to whom Division applies
- 102AD Taxable income to which Division applies
- 102AE Eligible assessable income
- 102AF Employment income and business income
- 102AG Trust income to which Division applies
- 102AGA Transfer of property as the result of a family breakdown
Division 6A--Alienation of income
- 102A Interpretation
- 102B Certain income transferred for short periods to be included in assessable income of transferor
- 102C Effect of certain transfers of rights to receive income from property
- 102CA Consideration in respect of transfer to be included in assessable income of transferor in certain cases
Division 6C--Income of certain public trading trusts
- 102M Interpretation
- 102MA Arrangements not covered
- 102MB Investing in land
- 102MC When trading business not carried on
- 102MD Exempt institution that is eligible for a refund not treated as exempt entity
- 102N Trading trusts
- 102NA Certain interposed trusts not trading trusts
- 102P Public unit trusts
- 102Q Resident unit trusts
- 102R Public trading trusts
- 102S Taxation of net income of public trading trust
- 102T Modified application of Act in relation to certain unit trusts
Division 6D--Provisions relating to certain closely held trusts
Subdivision A--Overview- 102UA What this Division is about Subdivision B--Interpretation
- 102UB Definitions--general
- 102UC Closely held trust
- 102UD Trustee beneficiary
- 102UE Meaning of untaxed part
- 102UG Correct TB statement
- 102UH TB statement period
- 102UI Tax - preferred amount
- 102UJ Extended concept of present entitlement to capital of a trust Subdivision C--Trustee beneficiary non-disclosure tax on share of net income
- 102UK Trustee beneficiary non - disclosure tax where no correct TB statement
- 102UL Exclusion of directors of closely held trust from liability to pay tax
- 102UM Trustee beneficiary non - disclosure tax where share is distributed to trustee of closely held trust Subdivision D--Payment etc. of trustee beneficiary non-disclosure tax
- 102UN Amount of trustee beneficiary non - disclosure tax reduced by notional tax offset
- 102UO Payment of trustee beneficiary non - disclosure tax
- 102UP Late payment of trustee beneficiary non - disclosure tax
- 102UR Notice of liability
- 102URA Request for notice of liability
- 102USA Recovery of trustee beneficiary non - disclosure tax from trustee beneficiaries providing incorrect information etc. to head trustee Subdivision E--Making correct TB statement about trustee beneficiaries of tax-preferred amounts
- 102UT Requirement to make correct TB statement about trustee beneficiaries of tax - preferred amounts Subdivision F--Special provisions about tax file numbers
- 102UU Trustee beneficiary may quote tax file number to trustee of closely held trust
- 102UV Trustee of closely held trust may record etc. tax file number
Division 6E--Adjustment of Division 6 assessable amount in relation to capital gains, franked distributions and franking credits
- 102UW Application of Division
- 102UX Adjustment of Division 6 assessable amount in relation to capital gains, franked distributions and franking credits
- 102UY Interpretation
Division 7--Private companies
- 102V Application of Division to non - share dividends
- 103 Interpretation
- 103A Private companies
- 109 Excessive payments to shareholders, directors and associates deemed to be dividends
Division 7A--Distributions to entities connected with a private company
Subdivision A--Overview of this Division- 109B Simplified outline of this Division Subdivision AA--Application of Division
- 109BA Application of Division to non - share dividends
- 109BB Application of Division to closely - held corporate limited partnerships
- 109BC Application of Division to non - resident companies Subdivision B--Private company payments, loans and debt forgiveness are treated as dividends
- 109C Payments treated as dividends
- 109CA Payment includes provision of asset
- 109D Loans treated as dividends
- 109E Amalgamated loan from a previous year treated as dividend if minimum repayment not made
- 109F Forgiven debts treated as dividends Subdivision C--Forgiven debts that are not treated as dividends
- 109G Debt forgiveness that does not give rise to a dividend Subdivision D--Payments and loans that are not treated as dividends
- 109H Simplified outline of this Subdivision
- 109J Payments discharging pecuniary obligations not treated as dividends
- 109K Inter - company payments and loans not treated as dividends
- 109L Certain payments and loans not treated as dividends
- 109M Loans made in the ordinary course of business on arm's length terms not treated as dividends
- 109N Loans meeting criteria for minimum interest rate and maximum term not treated as dividends
- 109NA Certain liquidator's distributions and loans not treated as dividends
- 109NB Loans to purchase shares under employee share schemes not treated as dividends
- 109P Amalgamated loans not treated as dividends in the year they are made
- 109Q Commissioner may allow amalgamated loan not to be treated as dividend
- 109R Some payments relating to loans not taken into account Subdivision DA--Demerger dividends not treated as dividends
- 109RA Demerger dividends not treated as dividends Subdivision DB--Other exceptions
- 109RB Commissioner may disregard operation of Division or allow dividend to be franked
- 109RC Dividend may be franked if taken to be paid because of family law obligation
- 109RD Commissioner may extend period for repayments of amalgamated loan Subdivision E--Payments and loans through interposed entities
- 109S Simplified outline of this Subdivision
- 109T Payments and loans by a private company to an entity through one or more interposed entities
- 109U Payments and loans through interposed entities relying on guarantees
- 109UA Certain liabilities under guarantees treated as payments
- 109V Amount of private company's payment to target entity through one or more interposed entities
- 109W Private company's loan to target entity through one or more interposed entities
- 109X Operation of Subdivision D in relation to payment or loan Subdivision EA--Unpaid present entitlements
- 109XA Payments, loans and debt forgiveness by a trustee in favour of a shareholder etc. of a private company with an unpaid present entitlement
- 109XB Amounts included in assessable income
- 109XC Modifications
- 109XD Forgiveness of loan debt does not give rise to assessable income if loan gives rise to assessable income Subdivision EB--Unpaid present entitlements--interposed entities
- 109XE Simplified outline of this Subdivision
- 109XF Payments through interposed entities
- 109XG Loans through interposed entities
- 109XH Amount and timing of payment or loan through interposed entities
- 109XI Entitlements to trust income through interposed trusts Subdivision F--General rules applying to all amounts treated as dividends
- 109Y Proportional reduction of dividends so they do not exceed distributable surplus
- 109Z Characteristics of dividends taken to be paid under this Division
- 109ZA No dividend taken to be paid for withholding tax purposes
- 109ZB Amount treated as dividend is not a fringe benefit
- 109ZC Treatment of dividend that is reduced on account of an amount taken under this Division to be a dividend
- 109ZCA Treatment of dividend that is reduced on account of an amount included in assessable income under Subdivision EA Subdivision G--Defined terms
- 109ZD Defined terms
- 109ZE Interpretation rules about entities
Division 9--Co-operative and mutual companies
- 117 Co - operative companies
- 118 Company not co - operative if less than 90% of business with members
- 119 Sums received to be taxed
- 120 Deductions allowable to co - operative company
- 121 Mutual insurance associations
Division 9AA--Demutualisation of insurance companies and affiliates
Subdivision A--What this Division is about- 121AA What this Division is about Subdivision B--Key concepts and related definitions
- 121AB Insurance company definitions
- 121AC Mutual affiliate company
- 121AD Demutualisation and demutualisation resolution day
- 121AE Demutualisation methods, the policyholder/member group and the listing period
- 121AEA Replacement of policyholders by persons exercising certain rights
- 121AF Demutualisation method 1
- 121AG Demutualisation method 2
- 121AH Demutualisation method 3
- 121AI Demutualisation method 4
- 121AJ Demutualisation method 5
- 121AK Demutualisation method 6
- 121AL Demutualisation method 7
- 121AM Embedded value of a mutual life insurance company
- 121AN Net tangible asset value of a general insurance company or mutual affiliate company
- 121AO Treasury bond rate, capital reserve adequacy level, eligible actuary and security
- 121AP Subsidiary and wholly - owned subsidiary
- 121AQ Other definitions
- 121AR List of definitions Subdivision C--Tax consequences of demutualisation
- 121AS CGT consequences of demutualisation
- 121AT Other tax consequences of demutualisation
- 121AU This Subdivision does not apply to demutualisation of friendly society health or life insurers
Division 9A--Offshore banking units
Subdivision A--Object and simplified outline- 121B Simplified outline Subdivision B--Interpretation
- 121C Interpretation
- 121D Meaning of OB activity
- 121DA Meaning of expressions relevant to investment activity
- 121DB Meaning of OB eligible contract activity
- 121DC Meaning of OB advisory activity
- 121DD Meaning of OB leasing activity
- 121E Meaning of offshore person
- 121EA OBU requirement
- 121EAA Activities recorded in domestic books not OB activities
- 121EB Internal financial dealings of an OBU
- 121EC Meaning of OBU resident - owner money
- 121ED Meaning of trade with a person
- 121EDA Meaning of OB income
- 121EE Definitions relating to assessable income of an OBU
- 121EF Definitions relating to allowable deductions of an OBU Subdivision C--Operative provisions
- 121EJ Source of income derived from OB activities
- 121EK Deemed interest on 90% of certain OBU resident - owner money
- 121EL Exemption of income etc. of OBU offshore investment trusts
- 121ELA Exemption of income etc. of overseas charitable institutions
- 121ELB Adjustment of capital gains and losses from disposal of units in OBU offshore investment trusts
Division 9C--Assessable income diverted under certain tax avoidance schemes
- 121F Interpretation
- 121G Diverted income and diverted trust income
- 121H Assessment of diverted income and diverted trust income
- 121J Ascertainment of diverted income or diverted trust income deemed to be an assessment
- 121K Application of International Tax Agreements Act
- 121L Division applies notwithstanding exemption under other laws
PART III--LIABILITY--TO TAXATION
Division 10E--PDFs (pooled development funds)
Subdivision A--Shares in PDFs- 124ZM Treatment distributions to shareholders in PDF
- 124ZN Exemption of income from sale of shares in a PDF
- 124ZO Shares in a PDF are not trading stock
- 124ZQ Effect of company becoming a PDF
- 124ZR Effect of company ceasing to be a PDF Subdivision B--The taxable income of PDFs
- 124ZS Definitions
- 124ZTA Taxable income in first year as PDF if PDF component is nil
- 124ZT SME assessable income
- 124ZU SME income component
- 124ZV Unregulated investment component Subdivision C--Adjustments of the tax treatment of capital gains and capital losses of PDFs
- 124ZW Definitions
- 124ZX Companies to which this Subdivision applies
- 124ZY Classes of assessable income
- 124ZZ Treatment of capital gains
- 124ZZA Allocation of gain amounts and loss amounts to classes of assessable income
- 124ZZB Assessable income etc. in relation to capital gains
- 124ZZD No net capital loss
Division 11--Interest paid by companies on bearer debentures
- 126 Interest paid by a company on bearer debentures
- 127 Credit for tax paid by company
- 128 Assessments of tax
Division 11A--Dividends, interest and royalties paid to non-residents and to certain other persons
Subdivision A--General- 128AAA Application of Division to non - share dividends
- 128A Interpretation
- 128AA Deemed interest in respect of transfers of certain securities
- 128AB Certificates relating to issue price of certain securities
- 128AC Deemed interest in respect of hire - purchase and certain other agreements
- 128AD Indemnification etc. agreements in relation to bills of exchange and promissory notes
- 128AE Interpretation provisions relating to offshore banking units
- 128AF Payments through interposed entities
- 128B Liability to withholding tax
- 128C Payment of withholding tax
- 128D Certain income not assessable
- 128F Division does not apply to interest on certain publicly offered company debentures or debt interests
- 128FA Division does not apply to interest on certain publicly offered unit trust debentures or debt interests
- 128GB Division not to apply to interest payments on offshore borrowings by offshore banking units
- 128NA Special tax payable in respect of certain securities and agreements
- 128NB Special tax payable in respect of certain dealings by current and former offshore banking units
- 128NBA Credits in respect of amounts assessed in relation to certain financial arrangements
- 128P Objections
- 128R Informal arrangements
Division 11C--Payments in respect of mining operations on Indigenous land
- 128U Interpretation
- 128V Liability to mining withholding tax
- 128W Payment of mining withholding tax
Division 12--Oversea ships
- 129 Taxable income of ship - owner or charterer
- 130 Commissioner may require master or agent to make return
- 131 Determination by Commissioner
- 132 Assessment of tax
- 133 Master liable to pay
- 134 Notice of assessment
- 135 Clearance of ship
- 135A Freights payable under certain agreements
Division 15--Insurance with non-residents
- 141 Interpretation
- 142 Income derived by non - resident insurer
- 143 Taxable income of non - resident insurer
- 144 Liability of agents of insurer
- 145 Deduction of premiums
- 146 Exporter to furnish information
- 147 Rate of tax in special circumstances
- 148 Reinsurance with non - residents
Division 16--Averaging of incomes
- 149 Average income
- 149A Capital gains, abnormal income and certain death benefits to be disregarded
- 150 First average year
- 151 First application of Division in relation to a taxpayer
- 152 Taxpayer not in receipt of assessable income
- 153 Taxpayer with no taxable income
- 154 Excess of allowable deductions
- 155 Permanent reduction of income
- 156 Rebate of tax for, or complementary tax payable by, certain primary producers
- 157 Application of Division to primary producers
- 158 Application of Division
- 158A Election that Division not apply
Division 16D--Certain arrangements relating to the use of property
- 159GE Interpretation
- 159GEA Division applies to certain State/Territory bodies
- 159GF Residual amounts
- 159GG Qualifying arrangements
- 159GH Application of Division in relation to property
- 159GJ Effect of application of Division on certain deductions etc.
- 159GK Effect of application of Division on assessability of arrangement payments
- 159GL Special provision relating to Division 10C or 10D property
- 159GM Special provision where cost of plant etc. is also eligible capital expenditure
- 159GN Effect of use of property under qualifying arrangement for producing assessable income
- 159GO Special provisions relating to partnerships
Division 16E--Accruals assessability etc. in respect of certain security payments
- 159GP Interpretation
- 159GQ Tax treatment of holder of qualifying security
- 159GQA Accrual period
- 159GQB Accrual amount
- 159GQC Implicit interest rate for fixed return security
- 159GQD Implicit interest rate for variable return security
- 159GR Consequences of actual payments
- 159GS Balancing adjustments on transfer of qualifying security
- 159GT Tax treatment of issuer of a qualifying security
- 159GU Effect of Division on certain transfer profits and losses
- 159GV Consequence of variation of terms of security
- 159GW Effect of Division in relation to non - residents
- 159GX Effect of Division where certain payments not assessable
- 159GY Effect of Division where qualifying security is trading stock
- 159GZ Stripped securities
Division 16J--Effect of cancellation of subsidiary's shares in holding company
- 159GZZZC Interpretation--general
- 159GZZZD Meaning of eligible entity , eligible interest and eligible proportion
- 159GZZZE Share cancellations to which this Division applies
- 159GZZZF Effect on subsidiary of share cancellations to which this Division applies
- 159GZZZG Pre - cancellation disposals of eligible interests
- 159GZZZH Post - cancellation disposals of eligible interests etc.
- 159GZZZI Additional application of sections 159GZZZG and 159GZZZH to associates
Division 16K--Effect of buy-backs of shares
Subdivision AA--Application of Division to non-share equity interests- 159GZZZIA Application of Division to non - share dividends Subdivision A--Interpretation
- 159GZZZJ Interpretation
- 159GZZZK Explanation of terms
- 159GZZZL Special buy - backs not made in ordinary course of trading on a stock exchange
- 159GZZZM Purchase price in respect of buy - back Subdivision B--Company buying-back shares
- 159GZZZN Buy - back and cancellation disregarded for certain purposes Subdivision C--Off-market purchases
- 159GZZZP Part of off - market purchase price is a dividend if the company is not a listed public company
- 159GZZZPA No part of off - market purchase price is a dividend if the company is a listed public company
- 159GZZZQ Consideration in respect of off - market purchase Subdivision D--On-market purchases
- 159GZZZR No part of on - market purchase price is a dividend
- 159GZZZS Consideration in respect of on - market purchase
Division 17--Rebates
Subdivision A--Concessional rebates- 159H Application Subdivision AB--Lump sum payments in arrears
- 159ZR Interpretation
- 159ZRA Eligibility for rebate
- 159ZRB Calculation of rebate
- 159ZRC Notional tax amount for recent accrual years
- 159ZRD Notional tax amount for distant accrual years Subdivision B--Miscellaneous
- 160AAAA Tax rebate for low income aged persons and pensioners
- 160AAAB Tax rebate for low income aged persons and pensioners--trustees assessed under section 98
- 160AAA Rebate in respect of certain benefits etc.
- 160AAB Rebate in respect of amounts assessable under section 26AH
- 160AD Maximum amount of rebates
- 160ADA Most tax offsets under the 1997 Assessment Act are treated as rebates
PART IIIB--AUSTRALIAN--BRANCHES OF FOREIGN BANKS
Division 1--Preliminary
- 160ZZVA Object
- 160ZZVB Application
- 160ZZV Definitions
- 160ZZW Certain provisions to apply as if Australian branch of foreign bank were a separate legal entity
Division 2--Provisions relating to income tax
- 160ZZX Income of branch to have Australian source
- 160ZZZ Notional borrowing by branch from bank
- 160ZZZA Notional payment of interest by branch to bank
- 160ZZZC Offshore banking units
- 160ZZZE Notional derivative transactions between branch and bank
- 160ZZZF Notional foreign exchange transactions between branch and bank
- 160ZZZG Losses
- 160ZZZH Net capital losses
- 160ZZZI Certain transactions to be disregarded
Division 3--Provisions relating to withholding tax
- 160ZZZJ Withholding tax on interest paid by branch to bank
Division 4--Extension of Part to Australian branches of foreign financial entities
- 160ZZZK Treatment like Australian branches of foreign banks
Division 5--Modifications relating to hybrid mismatch rules
- 160ZZZL Certain "hybrid mismatch" deductions denied
- 160ZZZN Adjusting if Australian branch derives dual inclusion income in a later year
- 160ZZZP Dual inclusion income not to be applied more than once
- 160ZZZR Interpretation
PART IV--RETURNS--AND ASSESSMENTS
- 161 Annual returns
- 161A Form and content of returns
- 161AA Contents of returns of full self - assessment taxpayers
- 161G Tax agent to give taxpayer copy of notice of assessment
- 162 Further returns and information
- 163 Special returns
- 166 Assessment
- 166A Deemed assessment
- 167 Default assessment
- 168 Special assessment
- 169 Assessments on all persons liable to tax
- 169AA Consolidated assessments
- 169A Reliance by Commissioner on returns and statements
- 170 Amendment of assessments
- 170A Amendment of assessments--interaction with other Acts
- 170B Protection for anticipation of certain discontinued announcements
- 170C Power of Commissioner to reduce amount of tax payable in certain cases
- 171 Where no notice of assessment served
- 171A Limited period to make assessments for nil liability returns for the 2003 - 04 year of income or earlier
- 172 Refunds of amounts overpaid
- 172A Consequences of amendment of assessments of tax offset refunds
- 173 Amended assessment to be an assessment
- 174 Notice of assessment
- 175 Validity of assessment
- 175A Objections against assessments
PART IVA--SCHEMES--TO REDUCE INCOME TAX
- 177A Interpretation
- 177B Operation of Part
- 177C Tax benefits
- 177CB The bases for identifying tax benefits
- 177D Schemes to which this Part applies
- 177DA Schemes that limit a taxable presence in Australia
- 177E Stripping of company profits
- 177EA Creation of franking debit or cancellation of franking credits
- 177EB Cancellation of franking credits--consolidated groups
- 177F Cancellation of tax benefits etc.
- 177G Amendment of assessments
- 177H Diverted profits tax--objects
- 177J Diverted profits tax--application
- 177K Diverted profits tax--$25 million income test
- 177L Diverted profits tax--sufficient foreign tax test
- 177M Diverted profits tax--sufficient economic substance test
- 177N Diverted profits tax--consequences
- 177P Diverted profits tax--liability
- 177Q Diverted profits tax--general interest charge on unpaid diverted profits tax or shortfall interest charge
- 177R Diverted profits tax--when shortfall interest charge is payable
PART VA--TAX--FILE NUMBERS
Division 1--Preliminary
- 202 Objects of this Part
- 202A Interpretation
- 202AA Definition of eligible PAYG payment
- 202AB Declaration that an arrangement is, or is not, a unit trust
Division 2--Issuing of tax file numbers
- 202B Application for tax file number
- 202BA Issuing of tax file numbers
- 202BB Current tax file number
- 202BC Deemed refusal by Commissioner
- 202BD Interim notices
- 202BE Cancellation of tax file numbers
- 202BF Alteration of tax file numbers
Division 3--Quotation of tax file numbers by recipients of eligible PAYG payments
- 202C TFN declarations by recipients of eligible PAYG payments
- 202CA Operation of TFN declaration
- 202CB Quotation of tax file number in TFN declaration
- 202CC Making a replacement TFN declaration in place of an ineffective declaration
- 202CD Sending of TFN declaration to Commissioner
- 202CE Effect of incorrect quotation of tax file number
- 202CEA Validation notices
- 202CF Payer must notify Commissioner if no TFN declaration by recipient
- 202CG Disclosing recipients' tax file numbers to payers
Division 4--Quotation of tax file numbers in connection with certain investments
- 202D Explanation of terms: investment, investor, investment body
- 202DB Quotation of tax file numbers in connection with investments
- 202DC Method of quoting tax file number
- 202DD Investor excused from quoting tax file number in certain circumstances
- 202DDB Quotation of tax file number in connection with indirectly held investment
- 202DE Securities dealer to inform the investment body of tax file number
- 202DF Effect of incorrect quotation of tax file number
- 202DG Investments held jointly
- 202DH Tax file number quoted for superannuation or surcharge purposes taken to be quoted for purposes of the taxation of eligible termination payments
- 202DHA Tax file number quoted for Division 3 purposes taken to have been quoted for superannuation purposes
- 202DI Tax file number quoted for RSA purposes taken to be quoted for purposes of the taxation of superannuation benefits
- 202DJ Tax file number quoted for purposes of taxation of superannuation benefits taken to be quoted for surcharge purposes
Division 4A--Quotation of tax file numbers in connection with farm management deposits
Division 4B--Quotation of tax file numbers in connection with certain closely held trusts
- 202DN Application of Division
- 202DO Quotation of tax file numbers
- 202DP Trustee must report quoted tax file numbers
- 202DR Effect of incorrect quotation of tax file number
Division 5--Exemptions
- 202EA Persons receiving certain pensions etc.--employment
- 202EB Persons receiving certain pensions etc.--investments
- 202EC Entities not required to lodge income tax returns
- 202EE Non - residents
- 202EG Manner of completing declarations
- 202EH Declarations under this Division to be retained in certain circumstances
Division 6--Review of decisions
Division 8--Tax file number sharing and verification
PART VIIB--MEDICARE--LEVY AND MEDICARE LEVY SURCHARGE
- 251R Interpretation
- 251S Medicare levy
- 251T Medicare levy (other than Medicare levy surcharge) not payable by prescribed persons or by certain trustees
- 251U Prescribed persons
- 251V Subsections 251R(4), (5), (6B), (6C) and (6D) not to apply to Medicare levy surcharge
- 251VA Subsection 251U(3) not to apply for Medicare levy surcharge
- 251W Regulations
- 251X Notice of assessment to set out Medicare levy and surcharge
- 251Z Administration of Medicare levy (fringe benefits) surcharge Act
PART VIII--MISCELLANEOUS
- 252 Public officer of company
- 252A Public officer of trust estate
- 253 Notifying and serving companies
- 254 Agents and trustees
- 255 Person in receipt or control of money from non - resident
- 257 Payment of tax by banker
- 260 Contracts to evade tax void
- 262 Periodical payments in the nature of income
- 262A Keeping of records
- 264BB Commissioner may require private health insurers to provide information
- 265A Release of liability of members of the Defence Force on death
- 265B Notices in relation to certain securities
- 266 Regulations
PART X--ATTRIBUTION--OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES
Division 1--Preliminary
- 316 Object of Part
- 317 Interpretation
- 318 Associates
- 319 Statutory accounting period of a company
- 320 Listed countries and unlisted countries
- 321 Each listed country and each unlisted country to be treated as a separate foreign country
- 322 Meaning of entitled to acquire
- 323 State foreign taxes may be treated as federal foreign taxes
- 324 When income or profits subject to tax in a listed country
- 325 When dividends etc. taxed in a country at normal company tax rate
- 326 AFI subsidiary
- 327 Eligible finance shares
- 327A Widely distributed finance shares
- 327B Transitional finance shares
- 328 Non - resident family trusts
- 329 Public unit trusts
- 330 Tax detriment
- 331 Company deemed to be treated as a resident of a listed country or an unlisted country for the purposes of the tax law of that country
- 332 Companies that are residents of listed countries
- 333 Companies that are residents of unlisted countries
- 334A Voting interests in companies
- 335 References extend to pre - commencement matters and things
Division 2--Types of entity
Subdivision A--Australian entities- 336 Australian entity
- 337 Australian partnership
- 338 Australian trust Subdivision B--Controlled foreign entities (CFEs)
- 339 Controlled foreign entity (CFE)
- 340 Controlled foreign company (CFC)
- 341 Controlled foreign partnership (CFP)
- 342 Controlled foreign trust (CFT) Subdivision C--Eligible transferors in relation to trusts
- 343 Interpretation
- 344 References to transfer of property or services
- 345 Deemed transfers of property or services
- 346 Circumstances in which a transfer of property or services is an eligible business transaction
- 347 Eligible transferor in relation to a discretionary trust
- 348 Eligible transferor in relation to a non - discretionary trust or a public unit trust
Division 3--Control interests, attribution interests, attributable taxpayers and attribution percentages
Subdivision A--Control interests- 349 Associate - inclusive control interest in a company or trust
- 350 Direct control interest in a company
- 351 Direct control interest in a trust
- 352 Indirect control interest in a company or trust
- 353 Control tracing interest in a company
- 354 Control tracing interest in a CFP
- 355 Control tracing interest in a CFT Subdivision B--Attribution interests
- 356 Direct attribution interest in a CFC or CFT
- 357 Indirect attribution interest in a CFC or CFT
- 358 Attribution tracing interest in a CFC
- 359 Attribution tracing interest in a CFP
- 360 Attribution tracing interest in a CFT Subdivision C--Attributable taxpayers and attribution percentages
- 361 Attributable taxpayer in relation to a CFC or a CFT
- 362 Attribution percentage of an attributable taxpayer
Division 4--Attribution accounts
- 363 Attribution account entity
- 364 Attribution account percentage
- 365 Attribution account payment
- 366 Direct attribution account interest in a company
- 367 Direct attribution account interest in a partnership
- 368 Direct attribution account interest in a trust
- 369 Indirect attribution account interest in an entity
- 370 Attribution surplus
- 371 Attribution credit
- 372 Attribution debit
- 373 Grossed - up amount of an attribution debit
Division 7--Calculation of attributable income of CFC
Subdivision A--Basic principles- 381 Separate attributable income for each attributable taxpayer
- 382 Attributable income is taxable income calculated on certain assumptions
- 383 Basic assumptions
- 384 Additional assumption for unlisted country CFC
- 385 Additional assumption for listed country CFC
- 386 Adjusted tainted income
- 387 Reduction of attributable income because of interim dividends Subdivision B--General modifications of Australian tax law
- 388 Double tax agreements to be disregarded
- 389 Certain provisions to be disregarded in calculating attributable income
- 389A Other provisions to be disregarded in calculating attributable income
- 390 Elections to be made by eligible taxpayer
- 392 Notional assessable amounts are to be pre - tax
- 393 Notional allowable deduction for taxes paid
- 394 Notional allowable deduction for eligible finance share dividends, widely distributed finance share dividends and transitional finance share dividends
- 395 Expenditure incurred to produce income or profits in later statutory accounting periods
- 396 Modified application of sections 25A and 52
- 397 Modified application of trading stock provisions
- 398 Modified application of depreciation provisions
- 398A Application of Division 3A of Part III
- 399 Modifications of net income of partnerships and trusts
- 399A Modified application of bad debt etc. provisions
- 400 Modified cross - border requirement for transfer pricing
- 401 Reduction of disposal consideration or capital proceeds if attributed income not distributed
- 402 Additional notional exempt income--unlisted or listed country CFC
- 403 Additional notional exempt income--unlisted country CFC
- 404 Application of Subdivision 768 - A of the Income Tax Assessment Act 1997 Subdivision C--Modifications relating to Australian capital gains tax
- 405 Interpretation
- 406 Meaning of c ommencing day and commencing day asset
- 408 Certain capital gains and losses disregarded
- 408A Certain events before commencing day ignored
- 409 Losses before 30 June 1990 to be disregarded
- 410 General modifications--CGT
- 411 Commencing day assets taken to have been acquired on commencing day
- 412 Cost base of commencing day asset
- 413 Adjustment of cost base as at commencing day--return of capital
- 414 Exercise of rights
- 418 Options
- 418A Effect of change of residence from Australia to listed or unlisted country
- 419 Modified application of Subdivision 126 - B of the Income Tax Assessment Act 1997
- 421 Elections under CGT roll - over provisions
- 422 Adjustment of capital proceeds where change of residence by eligible CFC from unlisted to listed country
- 423 Adjustment of capital proceeds where section 47A applies to rolled - over assets Subdivision D--Modifications relating to losses
- 425 Sometimes - exempt income etc.
- 426 Creation of loss
- 427 Certain provisions to be disregarded
- 428 Subdivision to apply as if there were always a requirement to calculate attributable income
- 429 Notional allowable deduction for (sometimes - exempt income) loss
- 431 Deduction etc. for previous period loss
Division 8--Active income test
Subdivision A--Basic conditions for passing the active income test- 432 Active income test Subdivision B--Tainted income ratio
- 433 Tainted income ratio
- 434 Gross turnover
- 435 Gross tainted turnover
- 436 Amounts excluded from active income test Subdivision C--Treatment of partnership income
- 437 Treatment of partnership income Subdivision D--General interpretive provisions
- 438 Roll - overs--asset disposals
- 439 When currency exchange gains or losses relate to active income transactions
- 440 Asset disposals--revaluations and arm's length amounts
- 441 Hire - purchase and other property financing transactions
- 442 Assumption of rights of lender under a loan
- 443 Net tainted commodity gains
- 444 Net tainted currency exchange gains
- 445 Net gains--disposal of tainted assets Subdivision E--Passive income, tainted sales income and tainted services income
- 446 Passive income
- 447 Tainted sales income
- 448 Tainted services income Subdivision F--Special rules relating to AFI subsidiaries carrying on financial intermediary business
- 449 AFI subsidiaries--interest income
- 450 AFI subsidiaries--asset disposals and currency transactions Subdivision G--Substantiation requirements
- 451 Active income test--substantiation requirements for company
- 452 Active income test--substantiation requirements for partnership
- 453 Active income test--substantiation requirements for attributable taxpayer
- 454 Assessment on assumption--retention of accounts etc. and compliance with information notices
- 455 Amendment of assessments
Division 9--Attribution of attributable income and other amounts
- 456 Assessability in respect of CFC's attributable income
- 456A Reduction of section 456 assessability where item subject to foreign accruals tax
- 457 Assessability where CFC changes residence from unlisted country to listed country or to Australia
- 459A Assessability where CFC or CFT has interest in certain attributable taxpayers
- 460 Only resident partners, beneficiaries etc. liable to be assessed as a result of attribution
- 460A Effect of reducing section CGT event J1 amount
Division 10--Post-attribution asset disposals
- 461 Reduction of disposal consideration or capital proceeds if attributed income not distributed
Division 11--Keeping of records
- 462 Keeping of records--section 456
- 462A Keeping of records--section 457
- 464A Keeping of records--section 459A
- 465 Offence of failing to keep records
- 466 Manner in which records required to be kept
- 467 Circumstances where records not required to be kept--reasonable excuse etc.
- 468 Treatment of partnerships