Taxation Laws Amendment Act (No. 5) 2000 Act No. 43 of 2000 as amended This compilation was prepared on 3 September 2010 taking into account amendments up to Act No. 75 of 2010 The text of any of those amendments not in force on that date is appended in the Notes section The operation of amendments that have been incorporated may be affected by application provisions that are set out in the Notes section Prepared by the Office of Legislative Drafting and Publishing, Attorney‑General's Department, Canberra Contents 1 Short title [see Note 1] 2 Commencement [see Note 1] 3 Schedule(s) Schedule 1—Motor vehicles for transporting disabled persons Sales Tax Assessment Act 1992 Schedule 2—Employee Share Schemes Income Tax Assessment Act 1936 Schedule 3—Closely held trusts Income Tax Assessment Act 1936 Notes An Act to amend the law relating to taxation, and for related purposes 1 Short title [see Note 1] This Act may be cited as the Taxation Laws Amendment Act (No. 5) 2000. 2 Commencement [see Note 1] This Act commences on the day on which it receives the Royal Assent. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. Schedule 1—Motor vehicles for transporting disabled persons Sales Tax Assessment Act 1992 1 After section 49 Insert: 49A Motor vehicles for transporting disabled persons (1) This section applies to motor vehicles: (a) designed or adapted for driving by a person who is suffering from a physical impairment; or (b) designed or adapted for transporting a person who is suffering from a physical impairment. (2) The exempt part is so much of the taxable value as represents the additional cost of manufacturing the motor vehicle resulting solely from the vehicle being designed or adapted for the purpose of: (a) it being driven by a person who is suffering from a physical impairment; or (b) it being used for the transportation of a person who is suffering from a physical impairment. (3) For the purposes of Schedule 6 to the Exemptions and Classifications Act, the taxable value of a motor vehicle to which this section applies is taken to be reduced by the amount of the exempt part. 2 Application The amendment made by this Schedule applies to dealings with goods on or after 26 June 1998. Schedule 2—Employee Share Schemes Income Tax Assessment Act 1936 1 At the end of section 139FA Add: (3) This section does not apply to a share if section 139FAA applies to the share. 2 After section 139FA Insert: 139FAA Listed shares—market value where public offer (1) This section applies to a share in a company if: (a) the share is acquired within the period starting 7 days before and ending 7 days after the day on which shares are first acquired under a public offer of shares in the company; and (b) the following rights attached to the share are the same as those attached to the shares acquired under the public offer: (i) rights in respect of voting; (ii) rights in respect of dividends; (iii) rights in respect of distribution of share capital in consequence of a reduction of share capital; (iv) rights in respect of distribution of the property of the company in the event of the winding up of the company; and (c) there is at least one price at which shares were sold under the public offer that satisfies the following requirements: (i) 1,000 Australian residents (other than residents who are employees of the company or who held shares in the company immediately before the offer was made) acquired shares at the price; (ii) the total cost of shares acquired by such Australian residents at the price was at least $1,000,000; and (d) the company has been a listed public company for at least 6 months immediately before the share is acquired. However, this section does not apply if subsection 139CC(4) applies to the share. (2) The market value of a share is the lowest price that satisfies the requirements of subparagraphs (1)(c)(i) and (ii) at which shares were sold under the public offer. What is a public offer? (3) A public offer of shares is an offer of shares in a company where: (a) the offer is by the company or by a person who, immediately before the offer is made, owns at least 20% of the shares with rights in respect of voting in the company; and (b) the offer is made to at least 10,000 Australian residents (other than residents who are employees of the company or who held shares in the company immediately before the offer was made). 3 At the end of section 139FC Add: (2) In calculating, for the purpose of subsection (1), the market value of the share that may be acquired by exercising the right, subsection 139FAA(1) applies as if the share were acquired on the particular day. 4 At the end of section 139FE Add: (2) In calculating, for the purpose of subsection (1), the market value of the share that may be acquired by exercising the right, subsection 139FAA(1) applies as if the share were acquired on the particular day. 5 At the end of section 139FK Add: (2) In calculating, for the purpose of subsection (1), the market value of the share that is the subject of the right, subsection 139FAA(1) applies as if the share were acquired on the particular day. 6 Application The amendments made by this Schedule apply to shares and rights acquired on or after 2 September 1999. Schedule 3—Closely held trusts Income Tax Assessment Act 1936 1 At the end of subsection 102UE(3) Add: "; and (c) the person is not an ultimate beneficiary in respect of the head trust amount under subsection (4). 2 Paragraph 102UE(4)(c) Repeal the paragraph, substitute: (c) the head trust amount is not greater than the amount worked out using the formula: where: lower level trust assessable income means the assessable income (disregarding any amount attributable to the head trust amount) taken into account in working out the net income of the lower level trust for the year of income. lower level trust deductions means allowable deductions taken into account in working out the net income of the lower level trust for the year of income. 3 Section 102UH Repeal the section, substitute: 102UH UB statement period The UB statement period, for the trustee of a trust in relation to a year of income, is the period from the end of the year of income until the end of: (a) the period within which the trustee is required to furnish to the Commissioner the trust's return of income for the year of income; or (b) such further period as the Commissioner allows. 4 Subsection 102UK(1) Omit "This section", substitute "Subject to subsection (2A), this section". 5 After subsection 102UK(2) Insert: Amendment of incorrect statement (2A) If: (a) during the UB statement period in relation to a year of income, the trustee of a closely held trust makes and gives to the Commissioner a statement, that the trustee believes on reasonable grounds is a correct UB statement, about the whole or part of a share of the net income of the closely held trust; and (b) the statement is not a correct UB statement about some or all (the amount subject to the error) of the whole or the part of the share, with the result that, apart from this subsection, this section applies; and (c) the trustee could not reasonably have foreseen the event that caused the statement not to be a correct UB statement; and (d) either: (i) before any ultimate beneficiary non‑disclosure tax becomes due and payable on the amount subject to the error as a result of this section applying; or (ii) before the end of 4 years after any such tax becomes due and payable; the trustee advises the Commissioner in writing of any change that is necessary to make the statement a correct UB statement about the whole or part of the amount subject to the error; 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. Notes to the Taxation Laws Amendment Act (No. 5) 2000 Note 1 The Taxation Laws Amendment Act (No. 5) 2000 as shown in this compilation comprises Act No. 43, 2000 amended as indicated in the Tables below. Table of Acts Act Number Date Date of commencement Application, saving or transitional provisions and year of Assent Taxation Laws Amendment Act (No. 5) 2000 43, 2000 3 May 2000 3 May 2000 Tax Laws Amendment (2010 Measures No. 2) Act 2010 75, 2010 28 June 2010 Schedule 6 (item 86): 29 June 2010 — Table of Amendments ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted Provision affected How affected S. 4.................... rep. No. 75, 2010