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Income Tax Assessment Act 1973

No. 51 of 1973

Short titleand citation.

AN ACTTo amend the Law relating to Income Tax.

[Assented to 14th June, 1973}

BE IT ENACTED by the Queen, the Senate and the House ofRepresentatives of Australia, as follows:-

1. (I)This Act may be cited as the Income Tax Assessment Act 1973.

(2) The income Tax'Assessment Act 1936-1972* is in this Act referredto as the Principal. Act.

(3) The Principal. Act, as amended by this Act, may be cited as theIncome Tax Assessment Act 1936-1973.

Cornmenco. 2. Subject to sub-section 25 (2), this Act shall come into operation onmeat. the day on which it receives the Royal Assent,

• Act No. 27, 1936, as amended by No. 68, 1936; No. 5, 1937; No, 46, 1938; No, 30, /939; Nos. 17 and 65,1940; Nos, 58 and 69, 1941; Nos. 22 and 50, 1942; No, 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6,1946; Nos. 11 and 63, 1947; No, 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos, 4, 28 and 90, 1952;Ives. 1, 28,45 and 8t, 1953; No.43, [954; Nog. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957;No. 55, 1958; Nog. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos, 39 and 98,1962; Nog, 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966;Nos. 19, 38, 76 and 85, 1967; Nos. 4, 60, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 654 and 93, 1971; and Nag, 5, 46, 47. 65 and 85, 1972.

1973 Income Tax Assessment No. 51

3. Section 16 of the Principal Act is amended--

(a) by omitting from paragraph (g) of sub-section (4) the words" Commonwealth Employees' Compensation Act 1930-1951 "and substituting the words " Compensation (CommonwealthEmployees) Act 1971-1972 "; and

(b) by inserting in paragraph (i) of sub-section (4), before the words" the Commonwealth Scholarships Board " the words " theSecretary, Department of Education, or ",

Officers toobservesecrecy,

4. Section 44 of the Principal Act is amended-- Dividends

(a) by omitting paragraphs (a), (b) and (c) of sub-section (2) andsubstituting the following paragraphs:---

`` (a) paid by a company wholly and exclusively out of theamount remaining after deducting from income derivedby the company that is exempt from income tax byreason of paragraph (o) or paragraph (p) of section :23,or by reason of section 23D, all losses and outgoingsincurred in gaining or producing that income that wouldhave been allowable deductions if that income had beenassessable income;

(b) paid by a company wholly and exclusively out of theamount of the income derived by the company that isexempt from income tax by reason of section 23A;

(c) paid by a company wholly and exclusively out of theamount remaining after deducting from income derivedby the company that the company has received as dividendsfrom another company, being dividends that, by reasonof paragraph (a) or (b), are not included in the assessableincome of the first-mentioned company, all losses andoutgoings incurred in gaining or producing that incomethat would have been allowable deductions if thatincome had been assessable income;

(ca) paid by a company wholly and exclusively out of profitsarising from. the sale or re-valuation of assets not acquiredfor the purpose of re-sale at a profit or from the issue ata premium of any instrument that is a convertible note forthe purposes of Division 3A (not being a convertiblenote in relation to which sub-section (1.) of section82s has effect or has at any time had effect) if the dividendspaid from such profits are satisfied by the issue of shares(other than redeemable shares) of the company declaringthe dividend; or ";

(b) by omitting from paragraph (a) of sub-section (2A) the words" sub-paragraph (ii) of paragraph (a), in sub-paragraph (ii) of ";

No. 51 Income Tax Assessment 1973

(c) by omitting from sub-section (2A) the words " in that sub-para-graph " and substituting the words " in paragraph (c), or in sub-paragraph (ii) of paragraph (d), as the case may be, of sub-section (2) ";

(d) by omitting from .sub-section (2o) the words " of sub-para,graph (iii) of paragraph (b) " and substituting the words " ofparagraph (ca) "; and

(e) by on -, itting. sub-sections (3), (4) and (5) and substituting the fol-lowing sub-section:—

" (3) reference in sub-section (2) to divide ndspaid by acompany and exclusively out of the amount

after deducting. from income derived by .11.e. company that is exemptfrom II tax by reason of gar:-i rtpa.pli (o) of sectie:: 23 all lossesand outgoings incurred in gaining. OT producing that income thatwould have been allowable deductions if that income had been

assessable income shall be read as including a reference to divi-deeds paid by a company, not being a resident, that would bedividends of that kind if the company were a resident".

Cost ofconvertingplant foruse inconnexionwith metricsystem to beallowablededuction.

5. After section 53r of the Principal Act the following section isinserted :—•

" 53o. (1) In. this section--

conversion costs ', in relation to a unit of property, means expendi-ture incurred by the taxpayer in converting or adapting the unitfor use in connexion with the metric system of measurement asdefined by section 3 of the Metric Conversion Act 1970-A971;

' unit of property' means a unit of property not being trading stockof the taxpayer.

" (7) Conversion costs incurred by the taxpayer in the year of incomein respect of a unit of property used by him for the purpose of producingassessable income or carrying on a business for that purpose shall, subjectto this section, be an allowable deduction.

" (3) For the purposes of this Act—(a) no part of any conversion costs shall be an allowable deduction.,

or be taken into account in ascertaining the amount of anallowable deduction, under a provision of this Act other thanthis section in the assessment of the taxpayer in respect of incomeof any year of income; and

(b) conversion costs shall be deemed not to be capital expenditureor expenditure of a capital nature.

" (4) Notwithstanding anything in any other provision of this Act,the Commissioner may amend an assessment in respect of income of theyear of income that commenced on 1st 'July, 1971, for the purpose ofgiving effect to this section.".

1973 _Income Tax Assessment No. 51

6. After section 63 of the Principal Act the following sections areinserted:.—

" 63A. (1) This section has effect notwithstanding sections 51 and 63, Bad debts ofcompany not

(2) Subject to the following provisions of this section and to sections allowable, :Luittetions63c.i ht owed to a taxpayer that if=. company, being a debt unic..s-s there is

ret-i du. :-* year income no!. ant:G.tminnity of

in th assessment the company beneficial

ofthe unless the debt is written off as bad ofthe year of income and. ----- sham), in

Cr, 11

(a) the company Comissioner; or(b) in the case of a company that is not a private ccompany in relation

to the year of income, the Commissioner considers that it is reasonable to assume,reasonable to assume,

that, at all times during the year of income, shares in the companycarrying between them--

(c) the right to exercise more than one-half of the voting power inthe Company;

(d) the right to receive more than one-half of any dividends that maybe paid by the company; and

(e) the right to receive more than one-half of any distribution ofcapital of the company,

were beneficially owned by persons who, at all times during the year inwhich the debt was incurred, beneficially owned shares in the companycarrying between them rights of those kinds.

" (3) Where---(a) sub-section (2) would, but for this sub-section, apply for the

purpose of determining whether a debt owed to a company is anallowable deduction in the assessment of the company inrespect of income of th.e of income;

(b) during the whole or any part of the year in which the debt wasincurred, or during the whole or any part. of the year of income,another company or other companies beneficially owned all orany of the shares in the first-mentioned company or an interestor interests in all or any of those shares; an.d

(c) the first-mentioned company requests the Commissioner at thetime when it furnishes to him a return (or, if more than one returnis furnished, the first return) of its income of the year of income,or within such further period as the Commissioner allows, thatsub-section (4) should apply for the purpose referred to in para-graph (a) or the Commissioner considers it reasonable that thatsub-section should apply for that purpose,:

then sub-section. (4) applies for that purpose in lieu of sub-section (2).

"(4) Where, by virtue of sub-section (3), this sub-section applies forthe purpose of determining whether a debt owed to a company (in this

No, 51 Income Tax Assessment 1973

sub-section referred to as the ' relevant company '} is an allowable deduc-tion in the assessment of the company in respect of income of the year ofincome, then, subject to the following provisions of this section and tosections 63B and 63c, that debt is not an allowable deduction in thatassessment unless the debt is written off as a bad debt during the year ofincome and the Commissioner is satisfied, or considers that it is reasonableto assume, that—

(a) at all times during the year of income the voting power in therelevant company was, either directly or through one or moireinterposed companies, trustees or partnerships, controlled, orcapable of being controlled, by a person not being a company, :orby two or more persons not being companies, who, either directlyor through one or more interposed companies, trustees or partner-ships, controlled, or was or were capable of controlling, the votingpower in the relevant company at all times during the year inwhich the debt was incurred;

(b) a person not being a company who had, or two or more personsnot being companies who had between them, at all times duringthe year of income a right to receive .. directly or indirectly, for hisor their own benefit more than one-half of any dividends thatmight be paid by the relevant company would, if the relevantcompany had paid a dividend at any time during the year in whichthe debt was incurred, have had, or have had between them, asthe case may be, a right to receive, directly or indirectly, for hisor their own benefit more than one-half of that dividend; and

(c) a person not being a company who had, or two or more personsnot being companies who had between them, at all times duringthe year of income a right to receive, directly or indirectly, for hisor their own benefit more than one-half of any distribution ofcapital of the relevant company would, if the relevant companyhad made a distribution of capital at any time during the year inwhich the debt was incurred, have had, or have bad between them,as the case may be, a right to receive, directly or indirectly, forhis or their own benefit more than one-half of that distributionof capital.

" (5) Where a debt owed to a taxpayer being a company was incurredduring a year before the year of income and that debt is not, by virtue ofsub-section (2) or sub-section (4), as the case may be, an allowable deduc-tion but the company satisfies the Commissioner that that sub-sectionwould not have prevented the debt from being an allowable deduction if,in relation to the year in which the debt was incurred, regard were had,for the purposes of that sub-section, only to the part of that year thatcommenced on the day on which the debt was incurred, that sub-sectiondoes not prevent the debt from being an allowable deduction.

" (6) Subject to the following provisions of this section and to sections63B and 63c, a debt owed to a taxpayer that is a company, being a debtthat was incurred during the year of income but not being a debt that was

1973 income Tax Assessment No. 51

incurred on the last day of the year of income, is not an allowablededuction in the assessment of the company in respect of income of theyear of income unless the debt is written off as a bad debt during the year

income and—(a) the company satisfies the Commissioner; or(b) in the case of a company that is not a private company in relation

to the year of income, the Commissioner considers that it isreasonable to assume,

that, at all times during the part of the year of income that followed theday on which the debt was incurred, shares in the company caee-±ieh : ..between. them rights of the kinds referred to in. sub-section (2)beneficially owned by persons who, at all times during the part of the.year of income that commenced on the first day of the year of incomeand ended on the day on which the debt was incurred, beneficially ownedshares in the company carrying between them rights of those kinds.

" (7) Where—(a) sub-section (6) would, but for this sub-section, apply for the

purpose of determining whether a debt owed. to a company is anallowable deduction in the assessment of the company in respect.

of income of the year of income;(b) at any time during the year of income another company or

companies beneficially owned all or any of the shares in thefirst-mentioned. company or an interest or interests in all or any

of those shares; and(c) the first-mentioned company requests the Commissioner atav:

time when it furnishes to him a return (or, if more than one raneeis furnished, the first return.) of its income of the year of income,or within such further period as the Commissioner allov ,. s.: thatsub-section (8) should. apply for the purpose referred to in.graph (a) or the Corn issioner considers it reasonable thatsub-section. should apply for that purpose,

then sub-section (8) applies for that purpose in lieu of sub-section (6).

(8) Where, by virtue of sub-section (7), this sub-section for

the purpose of determining whether a debt owed to a com pany (insub-section referred to as the relevant company ') is an allowable a:eh:a...-don in the assessment of the company in respect of income of the year ofincome, then, subject to the following provisions of this section and tosections 63n and 63c, that debt is not an allowable deduction in thatassessment unless the debt is written off as a bad debt during the year ofincome and the Commissioner is satisfied, or considers that it is reasonableto assume, that—

(a) at all times during the part of the year of income that followedthe day on which the debt was incurred, the voting power in therelevant company was, either directly or through one or moreinterposed companies, trustees or partnerships, controlled, orcapable of being controlled, by a person not being a company, orby two or more persons not being companies, who, either directly

No. 51 income Tax Assessment 1973

or through one or more interposed companies, trustees or partnerships, controlled, or was or were capable of controlling, the votingpower in the relevant company at all times during the part of theyear of income that commenced on the first day of the year ofincome and ended on the day on which the debt was incurred;

(b) a person not being a company who had, or two or more personsnot being companies who had between them, at all times duringthe part of the year of income that followed the day on which thedebt was incurred a right to receive, directly or indirectly, forhis or their own benefit more than one-half of any dividends thatmight be paid by the relevant company would, if the relevantcompany had paid a dividend at any time during the part of theyear of income that commenced on the first day of the year ofincome and ended on the day on which the debt was incurred,have had, or have had between them, as the case may be, a rightto receive, directly or indirectly, for his or their own benefit morethan one-half of that dividend; and

(c) a person not being a company who had, or two or more personsnot being companies who had between them, at all times duringthe part of the year of income that followed the day on whichthe debt was incurred, a right to receive, directly or indirectly,for his or their own benefit more than one-half of any distributionof capital of the relevant company would, if the relevant companyhad made a distribution of capital at any time during the part ofthe year of income that commenced on the first day of the year ofincome and ended on the day OD which the debt. was incurred,have had, or have had between them, as the case may be, a right toreceive, directly or indirectly, for his or their own benefit morethan one-half of that distribution of capital.

" (9) For the purposes of this section, a person shall be deemed to bea person who had, or would have had, a right to receive indirectly for hisown benefit the whole or a particular fraction of a dividend that might be,or might have been, paid by a company or of a distribution of capital of acompany, or two or more persons shall be deemed to be persons who had,or would have had, between them a right to receive indirectly for theirown. benefit the whole or a particular fraction of such a dividend ordistribution of capital, if, in the event of a payment of a dividend by thecompany, or of a. distribution of capital of the company, the person orpersons would, otherwise than as a shareholder or shareholders of thecompany or as a trustee or trustees, receive or have received the whole orthat fraction, as the case may be, of that. dividend, or of that distributionof capital, if there had been successive distributions of the relative parts ofthat dividend, or of that distribution of capital, to and by each of anycompanies or trustees interposed between the company paying thedividend, or making the distribution of capital, and that person or thosepersons,

1973 Income Tax Assessment No. 51.

" (10) Section 80B applies for the purposes of the application. of thepreceding provisions of this section in determining whether a debt owedto a company and written of as a had. debt during the year of incomeis an allowable deduction in the assessment of the company in respect ofincome of the year of income in like manner as that section applies for thepurposes of the application of section. 80A in. determining whether a lossincurred by a company in a year before the year of income is to be takeninto account for the purposes of section 80 or section 80AA but, for thepurposes of section 80B as so applying—

(a) a reference in that section to the year in which the loss was incurredshall be read as a reference—

(i) in the case of the application of that section in relation tosub-sections (2) and (4)—to the year in which the debtwas incurred;

(ii) in the ease of the application of that section in relation tosub-section (5)—to the part of the year in which the debtwas incurred that commenced on the day on which thedebt was incurred and ended at the expiration of that year;and

(iii) in the case of the application. of that section in relation tosub-sections (6) and (8)---to the part of the year of incomethat commenced on the first day of the year of incomeand ended on the day on which the debt was incurred;

(b) a reference in that section to the year of income shall, in the easeof the application of that section in relation to sub-sections (6)and (8), be read as a reference to the part of the year of incomethat followed the day on. which the debt was incurred; and

(c) the reference in paragraph (c) of sub-section (5) of that section tothe purpose of enabling the company to take into account for thepurposes of section 80 or section 80AA a loss that the company hadincurred, or might incur, shall be read as a. reference to thepurpose of securing that a deduction would be allowable inrespect of a debt that the company had written off, or mightwrite off, as a bad debt.

" (11) A debt owed. to a taxpayer that is a company, being a debt thatwas incurred, and is written off as a had debt, on the last day of the yearof income, is not an allowable deduction.

" (12) This section does not apply in relation to a debt if the Com-missioner considers that, having regard to the persons who were thebeneficial owners of the shares in the company at the time when in hisopinion the debt became a bad debt, it would be unreasonable for thissection to apply in relation to that debt.


Bad debts ofcompany notallowabledeductionsin certaincircum-stances.

" 63n. (1) Notwithstanding sections 51, 63 and 63A but subject tosection 63c, a debt owed to a taxpayer that is a company, being a debtthat is written off as a bad debt during the year of income, is not anallowable deduction if—

(a) during the year of income the company derived income that thecompany would not have derived if the debt had not been incurredand written off, or capable of being written off, as a bad debt;

(b) a person other than the company will, either directly or indirectly,receive any benefit or obtain any advantage in relation to theapplication of this Act as a result of the operation of any agree-ment, scheme, arrangement, understanding, transaction, course ofconduct or course of business that would not have been enteredinto or carried out if the debt had not been incurred and writtenoff, or capable of being written off, as a bad debt;

(c) the affairs or business operations of the cnieTnany were managedor conducted-

(i) where the debt was incurred before the yearof income---during the year of income; or

(ii) where the debt was incurred during the year of income--during the part of the year of income that followed theday on which the debt was incurred,

without proper regard to the rights, powers or interests of con.-tinning shareholders in the company;

(d) where the debt was incurred before the year of income—duringthe whole or any part of the year of income the voting power inthe company was, either directly or through one or more inter-posed companies, trustees or partnerships, controlled by a personwho did. not, either directly or through one or more interposedcompanies, trustees of partnerships, control the voting power inthe company during the whole of the year in which the debt wasincurred or, in a case to which sub-section (5) of section 63Aapplies, during the of that year that commenced on the dayon which the debt is incurred, and that person acquired. thecontrol of that voting power for the purpose, or for purposesthat included the purpose, of receiving any benefit or obtainingany advantage in relation to the application of this Act or securingthat another person would receive such a benefit or obtain suchan advantage; or

(e) where the debt was incurred during the year of income—atany time during the part of the year of income that followed theday on which the debt was incurred. the voting power in thecompany was, either directly or through one or more interposedcompanies, trustees or partnerships, controlled by a person whodid not, either directly or through one or more interposed com-panies, trustees or partnerships, control the voting power in thecompany at all times during the part of the year of income that

1973 Income Tax Assessment No. 51.

commenced on the first day of the year of income and ended onthe day on which the debt was incurred, and that person acquiredthe control of that voting power for the purpose, or for purposesthat included the purpose, referred to in paragraph (d).

" (2) Paragraph. (a) of sub-section (I) applies notwithstanding thatthe income was derived by the company in the course of ordinary familyor commercial dealing but that paragraph does not apply where the con-tinuing .shareholders will benefit from the derivation of the income to anextent that the Commissioner considers to be fair and reasonable havingregard to their rights and interests in the company.

" (3) Without limiting the generality of paragraph. (b) of sub-section (1), a person shall be deemed, for the purposes of that paragraph,to receive a benefit or obtain an advantage in relation to the applicationof this Act if the person is not liable to pay income tax in respect of ayear of income, or the liability of the person to pay income tax in respectof a year of income is reduced, by reason that the person has not derivedincome that the person would have derived if the agreement, scheme,arrangement, understanding, transaction, course of conduct or course ofbusiness had not been entered into or carried out.

" (4) Paragraph (b) of sub-section. (1) applies notwithstanding thatthe agreement, scheme, arrangement, understanding, transaction, courseof conduct or course of business was entered into or carried out in thecourse of ordinary family or commercial dealing but that paragraph doesnot apply in relation to benefit or advantage that is received or obtainedby a person who had a shareholding interest in the company in the yearof income, being a benefit or advantage that the Commissioner considersto be fair and reasonable having regard to that shareholding interest.

(5) For the purposes of this section—

(a) a person has a shareholding interest in a company if he is thebeneficial owner of or of an interest in, any shares in the com-pany; and

(b) where a person has a shareholding interest in a company thathas a shareholding interest in another company (including.shareholding interest that the company has in that other com-pany by any other application or applications of this paragraph)that person shall be deemed to have a shareholding interest inthat other company.

" (6) For the purposes of the application of this section in relationto a debt owed to a company, a reference in this section to continuingshareholders in the company shall be read as a reference to personsreferred to in whichever of the following sub-sections of section 63A,namely, sub-sections (2), (4), (6) and (8), applies for the purpose ofdeter mining whether the debt is an allowable deduction.


(7) in determining for the purposes of this section whether theaffairs or business operations of a company were managed or conducted

r-ueittioned. (c) (1), regard shall be had toor done in the (IT the or of

ser.hurs or cr. purpose or purposesandthat the doing

act. or pir (.:4` ordinary family or corn-

the purposes this section, it shall be taken that

(a mmmc wauld no! Hz if a 'particularnot been

been derived by a person if a particular actbeen done or

1:0 arrangement, understanding, transaction,or course of would not have been

entered into or carried oLt act had not been done,

income would not have been derived by the company, thehave been derived by the person, or the agreement : scheme,understanding, transaction, course of conduct or course of

rot been entered into or carried out, mayacne of bore acts (including that act) had been

Z9) A reference in sub-section (8) to the doing of an act includes areference to the happening of an event or the existence of a matter orci -c um stance.

Bad debts ofcompanymay beallowabledeductionswherecompanycarries onsamebusiness.

" 63c. (1) Subject to sub-section (2), where--

(a) a debt that is written off by a company as a had debt during theyear of income would not, but for this section, by reason of achance that. has taken place in the beneficial ownership of sharesin the company or in any other company, be an allowablededuction;

(b) the first-mentioned company carried on.---(i) if the debt was incurred before the year of income---at all

times during the year of income; or

(ii) if the debt was incurred during the year of income—at alltimes during the part of the year of income that followedthe day on which the debt was incurred,.

the same business as it carried on immediately before the changereferred to in paragraph (a) took place; and

(c) the first-mentioned company did not derive income-(i) if the debt was incurred before the year of income—at any

time during the year of income; or


(ii) if the debt was incurred during the year of income—at anytime during the part of the year of income that followed

the day wt. which the debt was incurred,from a a kind that it did not. carry on, or from

transaction of a. kind that it had At entered into in the courseof business operations, before the change took place,

sections 63A and 63b do not prevent the debt. being- an allowable deduction.

" (2) Sub-section (1) does not apply in respect of a debt that is writtenoff by a company as bad debt during the year Income

(a) before the "...'erred to in that sub-section took ”:ace, thecompany commenced carry on a 11;,;:,,, it had no p-re-

vi ,:c:rsIy carried. or entered. into, in the of its businessoperations, transaction of a kind that 'had not previously

enter e: into;(b) the company commenced to carry on that business or entered

into that transaction for the purpose, or for purposes that includedthe purpose, of securing that a: deduction would be allowable byvirtue of sub-section in respect of a debt that the company hadwritten. off, might write off, as a. had debt.",

7. Section 80 of the Principal Act is amended. by omitting fromsub-section (3A) the words " sub-paragraph (iii) of paragraph (b) ofsub-section (2) " and substituting the words " paragraph (ca) of sub-section. (2) ".

8. Section 80A of the Principal Act is repealed. and the followingsection substituted:—

" 80A. (1) Notwithstanding sections 80 and 80AA but subject to thissection and sections 80b, 80DA and 80E, a loss incurred by a company ina year before th.e year of income shall not he taken into account for thepurposes of section 80 or section. 80AA unless--

(a) the company satisfies the Commissioner; or(b) in the case of a company that is not a private company in relation

to the year of income, the Commissioner considers that it isreasonable to assume,

that, at all times during the year of income, shares in the company carryingbetween them-

(c) the right to exercise more than one-half of the voting power inthe company;

(d) the right to receive more than one-half of any dividends that maybe paid by the company; and

(e) the right to receive more than one-half of any distribution ofcapital of the company,

were beneficially owned by persons who, at all times during th.e year inwhich the loss was incurred, beneficially owned shares in the companycarrying between them rights of those kinds.

Losses ofpreviousyears.

Losses ofpreviousyears notto he takeninto accountunless thereis substantialcontinuityof beneficialownershipof sharesin company.



purpose of determining whether a loss incurred by a company ina year before the year of income is to be taken into account forthe purposes of section 80 or section 80AA;

(b) during the whole or any part of the year in the loss wasincurred, or during the whole or any part of the year of income,another company or other companies beneficially owned all orany of the shares in the first-mentioned company or an interestor interests in all or any of those shares; and

(c) the first-mentioned company requests the Commissioner at thetime when it furnishes to him a return (or, if more than one returnis furnished, the first return) of its income of the year of income,or within such further period as the Commissioner allows, thatsub-section (3) should apply for the purpose referred. to in para-graph (a) or the Commissioner considers it reasonable that thatsub-section should apply for that purpose,

then sub-section (3) applies for that purpose in lieu of sub-section (I).

" (3) Where, by virtue of sub-section (2), this sub-section applies forthe purpose of determining whether a loss incurred by a company (in thissub-section referred to as the ' loss company ') in a year before the yearof income is to be taken into account for the purposes of section 80 orsection 80AA, then, notwithstanding those sections but subject to sub-section (5) and sections 80a, SODA and 80E, that loss shall not be takeninto account for the purposes of section 80 section 80AA unless theCommissioner is satisfied, or considers that it reasonable to assume,that—

(a) at all times during the year of income the voting power in the losscompany was, either directly or through one or more interposedcompanies, trustees or partnerships, controlled, or capable ofbeing controlled, by a person not being a company, or by two ormore persons not being companies, who, either directly or throughone or more interposed companies, trustees or partnerships,controlled, or was or were capable of controlling, the votingpower in the loss company at all times during the year in whichthe loss was incurred;

(b) a person not being a company who had, or two or more personsnot being companies who had between them, at all times duringthe year of income a right to receive, directly or indirectly, for hisor their own benefit more than one-half of any dividends thatmight be paid by the loss company would, if the loss company hadpaid a dividend at any time during the year in which the loss wasincurred, have had, or have had between them, as the case may be,a right to receive, directly or indirectly, for his or their own benefitmore than one-half of that dividend; and

(c) a person not being a company who had, or two or more personsnot being companies who had between them, at all times during


the year of income a right to receive, directly or indirectly, for hisor their own benefit more than one-half of any distribution ofcapital of the loss company would, if the loss company had made adistribution of capital at any time during the year in which theloss was incurred, have had, or have had between them, as thecase may be, a right to receive, directly or indirectly, for his ortheir own benefit. more than. one-half of that distribution of capital.

" (4) For the purposes of this section, a person shall be deemed to bea person who had, or would have had, a right to receive indirectly for hisown benefit the whole or a particular fraction. of a dividend that might be,or might have been, paid by a company or of a. distribution of capital of acompany, or two or more persons shall be deemed to be persons who had,or would have had., between them a right to receive indirectly for theirown benefit the whole or a particular fraction of such a. dividend ordistribution of capital, if, in the event of a payment of a dividend. by thecompany, or of a. distribution of capital of the company, the person orpersons would, otherwise than as a shareholder or shareholders of thecompany or as a trustee or trustees, receive or have received the whole orthat fraction, as the case may be, of that dividend, or of that distributionof capital, if there had been successive distributions of the relative partsof that dividend, or of that distribution of capital, to and by each of anycompanies or trustees interposed between the company paying the divi-dend, or making the distribution of capital, and that person or thosepersons.

" (5) Subject to sections 80B, 80DA and 80e , where a loss incurred bya company in a year before the year of income is not, by virtue of sub-section (I) or sub-section (3), as the case may be, to be taken into accountfor the purposes of section 80 or section 80AA. but the company satisfies theCommissioner that that sub-section would. not have prevented the loss frombeing so taken into account if regard ,ere had, for tar purposes of that sub-section, to part only of the year in which the foss ,vas incurred, the Com-missioner may take into account for the purposes. or section 80 or section80AA such part of the loss as he considers to be the amount of the loss thatwas incurred. during that part of that year. ".

9. Section 80B of the Principal Act is amended— Specialprovisions

(a) by inserting in sub-section (I), after the word " loss ", the words relating to" or a part of a loss "; beneficial

ownership of,(b) by omitting sub-sections (2) and (4); or rights

attached to,(c) by omitting paragraph (a) of sub-section (5) and substituting the shares.

following paragraph:—

" (a) the company claims that a person beneficially ownedshares in the company at a time during the year in whichthe loss was incurred and: also beneficially owned sharesin the company at a time (in this sub-section referred toas the relevant time ') during the year of income;";


(d) by omitting from paragraph (b) of sub-section (5) the words" that person entered into a contract, agreement or arrangement,or granted or was granted a right, power or option (including acontingent right, power or option)," and substituting the words" an agreement was entered into, or a right, power or option.(including a contingent right, power or option) was granted,being an agreement, right, power or option ";

(e) by omitting from paragraph (c) of sub-section (5) the words" contract, agreement or arrangement " (wherever occurring) andsubstituting the word " agreement " ;

(f). by inserting in paragraph (c) of sub-section (5), after the word." granted. " (first occurring), the words " or acquired ";

(g). by omitting from sub-sections (6) and (7) the words " or arrange-ment " (wherever occurring); and

(h) by adding at the end thereof the following sub-sections:-

" (9) In so far as sub-sections (5), (6), (7) and (8) have effectfor the purposes of the application of sub-section (5) of section80A in determining whether a part of a loss incurred by a companyin a year before the year of income is to be taken into account, areference in those sub-sections to the year in which the loss wasincurred shall be read as a reference to the part of that yearreferred to in sub-section (5) of section 80A.

" (10) A reference in this section to an agreement, right, poweror option shall be read as including a reference to an agreement,right, power or option that is not enforceable by legal proceedingswhether or not it was intended to be so enforceable.

" (11) For the purposes of this section, an arrangement orunderstanding, whether formal or informal and whether expressor implied, shall be deemed to be an agreement".

Repeal ofsections 80cand 80o.

Losses ofpreviousyears notto be takeninto accountin certaincircum-stances.

10. Sections 80c and 80n of the Principal Act are repealed.

11. Before section 80e of the Principal Act the following section isinserted:—.....

" SODA. (I) Notwithstanding sections 80 and 80AA but subject tosection 80n, a. loss, or a part of a loss, incurred by a company in a year(in this section referred to as the year of loss before the year of incomeshall not be taken into account for the purposes of section 80 or section80AA if—

(a) during the year of income the company derived, income that thecompany would not have derived if the loss, or the part of theloss, had not been available to be taken into account for thepurposes of section 80 or section 80AA;

(b) a person other than the company will, either directly or indirectly,receive any benefit or obtain any advantage in relation to the


application of this Act as a result of the operation of any agree-ment, scheme, arrangement, understanding, transaction, course ofconduct or course of business ncn.id not have been enteredinto or carried out if the loss, or the part of the loss, had not beenavailable to be taken into account for the purposes of section 80or section. 80AAthe or business operations of the company wee: managed

year of income without regardthe Pthis povors or interests of share-holders in thecompany;or

during iHr whole or any part of the year of income the votingpow: ln the company either directly or through one ormore trustees or partnerships , controlledby a person one or moreinterposed companies, partnerships, control the votingpower during of the year. of loss or, ina case to (5) during thepart of the ot' year loss in that per-son ,:"4411.at power purpose, orfor ir H ' benefitor in 1 to n op of thisAct or securing that, another person cotdr receive such a benefitor obtain such. an advantage.

(2) Paragraph (a) of sub-sect'on (I) thatthe income the Course familyor commercial nut that does: where the

of that income toan extent that the Commissioner considers to he fair and reasonablehaving regard to their rights art': interests in the company

" (3)without . paragraph tii) of sub-section(1), a of that paragraph,receive a benefit. or obtain to thethis Act if the person is :not. talk respect of year ofincome, or the liability of the person to I.:. tax in respect of a yearof income is reduced, by reason that the person has not derived incomethat the person would have derived, if the agreement, scheme, arrange-ment, understanding, transaction, course of conduct or course of businesshad not been entered into or carried out.

" (4) Paragraph (b) of sub-section (1) applies notwithstanding thatthe agreement, scheme, arrangement, understanding, transaction, courseof conduct or course of business was entered into or carried. out in thecourse of ordinary family or commercial dealing but that paragraph doesnot apply in relation to a benefit or advantage that is received or obtainedby a person. who had a shareholding interest in the company in the yearof income, being a benefit or advantage that the Commissioner considersto be fair and reasonable having regard to that shareholding interest.

(c)

(d)

No, 51 Income Tax Assessment 1973-

" (5) For the purposes of this section—

(a) a person has a shareholding interest in a company if he is thebeneficial owner of, or of an interest in, any shares in the company;and

(h) when:: a person has a shareholding interest in a company that hasa shareholding interest in another company (including a

shareholding interest that the company has in that other company byany other application or applications of this paragraph) thatperson shall be deemed to have a shareholding interest in thatother company.

" (6) For the purposes of the application of this section in relationto a loss, or a part of a loss, incurred by a company, a reference in thissection to continuing shareholders in the company shall—

(a) if sub-section (1) of section 80A applies for the purpose of deter-mining whether the loss, or the part of the loss, is to be takeninto account for the purposes of section 80 or section 80AA---beread as a reference to persons referred to in sub-section (1) ofsection 80A; and.

(h) if sub-section (3) of section 80A applies for the purpose of deter-mining whether the loss, or the part of the loss, is to be so takeninto account—be read as a reference to persons referred to insub-section (3) of section 80A.

" (7) In determining for the purposes of this section whether theaffairs or business operations of a company were managed or conductedas mentioned in paragraph (c) of sub-section (1), regard shall be had toany act or thing done in the coarse of the management or conduct ofthose affairs or business operations, irrespective of the purpose or pur-poses for which that act or thing was done and notwithstanding that thedoing of that act or thing took place in the course of ordinary family orcommercial. dealing.

" (8) For the purposes of this section, it shall be taken that

(a) income would not have been derived by a company if a particularact had not been done;

(b) income would have been derived by a person if a particular acthad not been done; or

(c) an agreement, scheme, arrangement, understanding, transaction,course of conduct or course of business would not have beenentered into or carried out if a particular act had not been done,

where the income would not have been derived by the company, theincome would have been derived by the person, or the agreement, scheme,arrangement, understanding, transaction, course of conduct or course ofbusiness would not have been entered into or carried out, as the case maybe, if none of two or more acts (including that act) had been done.


" (9) A reference in sub-section (8) to the doing of an act includes areference to the happening of an event or the existence of a matter orcircumstance."

12. Section 80e of the Principal Act is amended—

(a) by omitting sub-section (1) and substituting the following sub-section n-

" (1) Subject to sub-section (2), where--

(a) the whole or apart of a loss incurred by a taxpayer, beinga company, in a year before the year of income would. not,but for this section, by reason of a change that has takenplace in the beneficial ownership of shares in the companyor in any other company, be taken into account for thepurposes of section 80 or section 80AA;

(b) the first-mentioned company carried on at all times duringthe year of income the same business as it carried onimmediately before the change referred to in paragraph (a)took place; and

(c) the first-mentioned company did not, at any time duringthe year of income, derive income from a business of akind that it did not carry on, or from a transaction. of akind that it had not entered into in the course of itsbusiness operations, before the change took place,

sections 80A and SODA. do not prevent the whole of the loss beingso taken into account,";

(b) by omitting from sub-section (2) the words " The last precedingsub-section does " and substituting the words " Sub-section (1)does "; and

(c) by inserting in parag.raph (b) of sub-section (2), after the wordaccount ", the won..!:; ", by virtue of sub-section (1),".

Losses ofpreviousyears maybe takeninto accountwherecompanycarries onsamebusiness.

13. Section 80F of the Principal Act is repealed. and the followingsection substituted:—

" 80r. Where-- Lossresulting

(a) a debt that is written off by a taxpayer, being a company, as a from baddebt had debt during a year of income is an allowable deduction; be taken

ot to

into account(b) the debt would not, but for sub-section (I) of section 63c, be an in certain

allowable deduction by reason of a change that has taken place circum -stances.in the beneficial. ownership of shares in the company or in anyother company;

(c) the change referred to in paragraph (b) occurred before the debtwas written off as a bad debt;


(d) by reason that the debt is an allowable deduction--

(i) the company incurred in that year of income a loss forthe purposes of section 80 or section 80AA. that the companywould not otherwise have incurred; or

(ii) a loss for the purposes of section 80 or section 80AA thatthe company would otherwise have incurred in that yearof income has been increased; and

the Comissioner is satisfied that the company carried on abusiness year of income for the purpose, or forpurposes that purpose, of securing that a. deductionwould he allowable in respect of the debt by virtue of sub-section(I) of section 63c,

the loss, or the increase in the amount. or the hiss, the ease may be, shallnot be taken into account .tr the ;:r.irp.i .tses ci section SO or section. 80AAin relation to a. later sear

(f) the company carried on at thr..es during that later year ofincome .ha aenne. business as it carried on immediately before the

paragraph (b, took place; and

(g) the company; nay did not, at any that later year of income,derive income fro M a business of a kind -.hat it did not carry on,

transaction of a kind that it had not entered into in thecourse- of us business operations, before the thmnge referred to in

paragraph (b) took place.".

Lifeinsurancepremiums,&c.

H. Section. 82.14 of the Principal Act is amended by inserting aftersub-section (I) the following sub-sections:—

"(IA) A premium paid under a policy of life, insurance shall not betaken into account for the purposes of sub-section (1) if----

(a) the first premium paid under the policy was paid on or after1st January, 1973; and

(b) benefit's will, may or have become payable under the policy,otherwise than upon the death of the person on whose life thepolicy was effected or upon the forfeiture or surrender of thepolicy, before the expiration of ten years from the date of com-mencement of risk.

"(ia) Where the first premium paid under a policy of life insurancewas paid on or after 1st January, 1973, and the amount of the premiumspayable under the policy in any year of income, other than the first yearof income in which a premium was payable under the policy, exceeds--

(a) except where paragraph (b) applies—the amount of the premiumspayable under the policy in the year of income last preceding thatfirst-mentioned year of income, plus one-quarter of that amount;or

1973

!flea, Tax A :; 7.,n t

No. 51

(b) where the amount of the premiums payable under the policy inthe year of income last preceding the first-mentioned year ofincome was payable in respect of a period. of less than one year—the amount of the premiums payable under the policy in respectof the period of one year from the date of commencement of risk,plus one-quarter of the last-mentioned amount,

sub-section (I) has effect as if the excess amount had not been paid and,for the purposes of the application of this sub-section in relation to a yearof income another year of income relation. to which thissub-section has applied, the amount of the premiums payable under thepolicy in that other year of income shall be deemed to be reduced by theamount of the excess.

" (lc) Whore a poi: life insurance, being a policy under whichthe first premium. paid on or after 1st January, 1973, has beenforfeited. or before the expiration of ten years from the dateof commence: lent then, notwithstanding change that mayhave taken place ownership of the policy before the forfeiture orsurrender, sub-section (I.) ha c. lc effect,and shall be deemed to have hadeffect—

(a) where the policy been forfeited or surrendered before theexpiration of years from the date of commencement of risk--

as if no amount had been paid as a premium under the policy;(b) where the policy has been forfeited or surrendered after the

expiration of five years from the commencement of riskand-

(i) premiums under the were payable by way of equalamounts payable at. or

(ii) premiums under the policy is were not so payable butparagraph (c) is not applicable,

as if any premiums payable under the policy in the period. offive years that ended on the day on which the policy was forfeitedor surrendered not been paid;

(c) where the policy has been forfeited or surrendered after theexpiration of five years from the date of commencement of riskand the amount of the. reduction referred to in this paragraph isgreater than the amount, if any, paid in respect of premiums thatbecame payable under the policy in the period of five years thatended on the day on which the policy was forfeited or surrenderedas if-

(i) the total amount of premiums paid under the policy werethe total amount in fact paid, reduced by an. amount thatbears to that total amount the same proportion as fivebears to the number of years (including a part of a year)in the period commencing on the date of commencementof risk and ending on the day on. which the policy wasforfeited or surrendered; and


(ii) the reduced amount had been applied, so far as it extends,in payment of premiums paid under the policy in theorder in which those premiums were paid.

" (1D) Where, otherwise than in accordance with the original terms ofthe policy, benefits have been paid under a policy of life insurance other-wise than on the death. of the person on whose life the policy was effectedor the forfeiture or surrender of the policy, before the expiration of lenyears from the date of commencement of risk, sub-section (lc) has effectas if the policy had been forfeited or surrendered on the date on whichthose benefits were paid.

" (1E) Where a person receives a new policy of life insurance in lieuof another policy owned by him, this section has effect as if the new policywere a continuation of that other policy in the terms of the new policy.

" (1r) Sub-section (1c) does not apply in relation to premiums paidunder a policy that has been forfeited or surrendered in circumstancesarising out of serious financial difficulties, where the policy was noteffected with a view to its being forfeited or surrendered within the periodof ten years from the date of commencement of risk.

" (1G) An amount paid on or after 1st January, 1973, to a super-annuation, sustentation, widows' or orphans' fund shall not he taken intoaccount for the purposes of sub-section (1) unless—

(a) the income derived by the fund during the year of income of thefund in which the amount is paid is exempt from tax by virtueof paragraph (e) or (jaa) of section 23, or is exempt, or would, butfor the provisions of section 121c, be exempt, from tax by virtueof paragraph (ja) of section 23; or

(b) the fund is a fund to which section 23r or section 79 applies inrelation to the year of income of the fund in which the paymentis made.

" (In) In this section-

' benefits does not include sickness or accident benefits or bonuses;

date of commencement of risk relation to a policy of life insur-ance, means the date of commencement of the period in respectof which the first or only premium paid under the policy waspaid or, if the first or only premium paid was not paid in respectof a period, the date on which that premium was paid;

policy of life insurance means a policy or contract for insurance onthe life of the taxpayer or his spouse or child or for a deferredannuity or other like provision for the spouse or child of thetaxpayer, not being--

(a) a policy or contract under which money is payable uponthe death of a person only if the death occurs within aparticular time and upon the forfeiture or surrender ofwhich no amount will or may become payable; or


(b) a policy or contract assigned or issued to a person byvirtue of his rights as a member of a superannuation fundwhere-

(i) the income derived by the fund during the year ofincome of the fund in which the policy or contractwas so assigned or issued is exempt from tax byvirtue of paragraph (jaa) of section 23 or is exempt,or would, but for the provisions of section 121c, beexempt, from tax by virtue of paragraph (ja) ofsection 23; or

(ii) the fund is, in relation to that year of income, afund to which section 23F or section 79 applies;

premium' includes a part of a premium but, for the purposes ofsub-section (In), does not include so much of a premium or of apart of a premium as is charged by reason of an exceptional riskof death.".

15. Section 1.03 of the Principal Act is amended by omitting from. thedefinition of " the undistributed amount " in sub-section (1) the words" and dividends to which sub-section (3) of section one hundred andfive A of this Act applies " and substituting the words ", dividends towhich sub-section (3) of section 105A applies and dividends that, byvirtue of sub-sections (5) to (11), inclusive, of that section or section105AAA, are not to be taken into account in ascertaining whether thecompany is deemed to have made a sufficient distribution in relation tothe year of income ".

16. Section 105A of the Principal Act is amended--

(a) by omitting from sub-section (2) the words " the first year ofincome of a private company " and substituting the words " theyear of income in which a company was incorporated, being ayear of income "; and

(b) by adding at the end thereof the following sub-sections:—

" (5) Notwithstanding sub-section (1) but subject to thefollowing provisions of this section and to sections 105AAA and105AAB, an amount paid in a dividend by a private company duringthe first two months of the period that is the prescribed period inrelation to the year of income (not being an amount paid on theday that is the first or last day of that period of two months)shall not be taken into account in ascertaining whether thecompany is deemed to have made a sufficient distribution in.relation to the year of income unless the company satisfies theCommissioner that, at all times during the part of that period oftwo month.s that followed the day on which that amount waspaid, shares in the company carrying between them—

(a) the right to exercise more than one-half of the votingpower in the company;

Interpre-tation.

Sufficientdistribution.


(b) the right to receive more than one-half of any dividendsthat may be paid by the company; and

(c) the right to receive more than one-half of any distri-bution of capital of the company,

were beneficially owned by persons .oho, at all times during thepart of that period of two months that commenced on the firstday of that period and coded on the day on which that amountwas paid, beneficially owned shares in the company carryingbetween them cv. r

(6) Where a company has, whether before or after the corn_me -heel-Tient of Ak sub.-:,„Gt:tion„ (tvi'l:CTZ in respect ofshares in the compari,. : person c.,-,=:nericial owner ofany of those Lane dividend ','as declaredshall be to: 11c: sub-section(5) or sub--section (9) in nets to dividend, to have con-tinued to be the beneficial owner of those rlienci untill the timewhen the dividend was paid.

(7) An amount paid in a dividend by private company 00the day uwt. P. the first or last day two month::: of theperiod tact prescribed period the year ofincome shall not accountthe deemed have made a distribution

relation to the

(a) a chacee in the beneficial of any shares in thecompany took place on that c: last day, as the case

may be, of that period of two months;

(b) where the amount was paid c rtm.anCe of a declarationof a dividend made before or last. day as the case

be, of that period of months a in thebeneficial of an: chares in the company took

placeafter the declaration of the dividend and before thatday; or

(c) on or before the last day of that periot.l of two months anagreement was into, or a right, -power or option(including a contingent right, power or option) was granted,that, in any way, or indirectly, related to shares inthe company and the agreement was entered into, or theright, power or option. was granted., for the purpose, or forpurposes that included the purpose, of securing that anamount that was or might be paid in. a dividend by thecompany during, that period of two months would betaken into account in ascertaining whether the company isdeemed to have made a sufficient distribution in relation tothe year of income.


" (8) Where—(a) sub-section (5) would, but for this sub-section, apply for

the purpose of determining whether an amount paid in adividend by a private company during the first two monthsof the period that is the prescribed period in relation to theyear of income is to be taken into account in ascertainingwhether the company is deemed to have made a sufficientdistribution in relation to the year of income;

(b) at any time during that first two months another companyor other companies beneficially owned all or any of theshares in the first-mentioned company or an interest orinterests in all or any of those shares; and

(c) the first-mentioned company requests the Commissionerat the time when it furnishes to him a return (or, if morethan one return is furnished, the first return) of its incomeof the year of income, or within such further period as theCommissioner allows, that sub-section (9) should applyfor the purpose referred to in paragraph (a) or the Com-missioner considers it reasonable that that sub-sectionshould apply for that purpose,

then sub-section (9) applies for that purpose in lieu of sub-section (5).

" (9) Where, by virtue of sub-section (8), this sub-sectionapplies for the purpose of determining whether an amount paidin a dividend by a private company (in this sub-section referred toas the `relevant company') during the first two months of theperiod that is the prescribed period in relation to the year ofincome is to be taken into account in ascertaining whether thecompany is deemed to have made a sufficient distribution inrelation to the year of income, then, notwithstanding sub-section(1) but subject to sub-section (12) and to sections 105AAA and105AAB, that amount shall not be so taken into account unlessthe Commissioner is satisfied, or considers that it is reasonableto assume, that—

(a) at all times during the part of that period of two monthsthat followed the day on which that amount was paid, thevoting power in the relevant company was, either directly orthrough one or more interposed companies, trustees orpartnerships, controlled, or capable of being controlled,by a person not being a company, or by two or morepersons not being companies, who, either directly orthrough one or more interposed companies, trustees orpartnerships, controlled, or was or were capable ofcontrolling, the voting power in the relevant company atail times during the part of that period of two monthsthat commenced on the first day of that period and endedon the day on which that amount was paid;

11547/74--I1


(b) a person not being a company who had, or two or morepersons not being companies who had between them, atall times during the part of that period of two monthsthat followed the day on which that amount was paid aright to receive, directly or indirectly, for his or their ownbenefit more than one-half of any dividends that might bepaid by the relevant company would, if the relevantcompany had paid a dividend at any time during the partof that period of two months that commenced on the firstday of that period and ended on the day on which thatamount was paid, have had, or have had between them, asthe case may be, a right to receive, directly or indirectly, forhis or their own benefit more than one-half of that dividend;and

(c) a person not being a company who had, or two or morepersons not being companies who had between them, atall times during the part of that period of two monthsthat followed the day on which that amount was paid aright to receive, directly or indirectly, for his or their ownbenefit more than one-half of any distribution of capitalof the relevant company would, if the relevant companyhad made a distribution of capital at any time during thepart of that period of two months that commenced on thefirst day of that period and ended on the day on which thatamount was paid, have had, or have had between them, asthe case may be, a right to receive, directly or indirectly, forhis or their own benefit more than one-half of that distri-bution of capital.

" (10) For the purposes of this section, a person shall be deemedto be a person who had, or would have had, a right to receiveindirectly for his own benefit the whole or a particular fraction ofa dividend that might be, or might have been, paid by a companyor of a distribution of capital of a company, or two or morepersons shall be deemed to be persons who had, or would havehad, between them a right to receive indirectly for their ownbenefit the whole or a particular fraction of such a dividend ordistribution of capital, if, in the event of a payment of a dividendby the company, or of a distribution of capital of the company,the person or persons would, otherwise than as a shareholder orshareholders of the company or as a trustee or trustees, receive orhave received the whole or that fraction, as the case may be, ofthat dividend, or of that distribution of capital, if there had beensuccessive distributions of the relative parts of that dividend, or ofthat distribution of capital, to and by each of any companies ortrustees interposed between the company paying the dividend, ormaking the distribution of capital, and that person or thosepersons.


" (11) Section 80B applies for the purposes of the applicationof sub-section (5) or sub-section (9) in determining whether anamount paid in a dividend by a private company during the firsttwo months of the period that is the prescribed period in relationto the year of income is to be taken into account in ascertainingwhether the company is deemed to have made a sufficient dis-tribution in relation to the year of income in like manner asthat section applies for the purposes of the application of section80A in determining whether a loss incurred by a company in ayear before the year of income is to be taken into account for thepurposes of section 80 or section 80AA but, for the purposes ofsection 80B as so applying—

(a) a reference in that section to the year in which the loss wasincurred shall be read as a reference to the part of thatperiod of two months that commenced on the first day ofthat period and ended on the day on which the amountwas paid;

(b) a reference in that section to the year of income shall beread as a reference to the part of that period of two monthsthat followed the day on which the amount was paid; and

(c) the reference in paragraph (c) of sub-section (5) of thatsection to the purpose of enabling the company to takeinto account for the purposes of section 80 or section 80AAa loss that the company had incurred, or might incur, shallbe read as a reference to the purpose of securing that anamount that the company had paid, or might pay, in adividend during that period of two months would be takeninto account in ascertaining whether the company isdeemed to have made a sufficient distribution in relationto the year of income.

" (12) Sub-sections (5) to (11), inclusive, do not apply inrelation to an amount paid in a dividend if the Commissionerconsiders that, having regard to the persons who were the bene-ficial owners of shares in the company at the time when theamount was paid, it would be unreasonable for those sub-sections to apply in relation to that amount.".

17. After section 105A of the Principal Act the following sections areinserted :—

" 105AAA. (1) Notwithstanding section 105A but subject to section105AAB, an amount paid in a dividend by a private company during thefirst two months of the period that is the prescribed period in relation tothe year of income shall not be taken into account in ascertaining whetherthe company is deemed to have made a sufficient distribution in relationto the year of income if---

(a) where the amount was paid before the last day of that periodof two months, the company derived, during the part of that

Dividendspaid in firsttwo monthsof prescribedperiod not tobe takeninto accountin certaincircum-stances.


period of two months that followed the day on which the amountwas paid, income that the company would not have derived ifthe company had not paid the amount in a dividend;

(b) a person other than the company will, either directly or in-directly, receive any benefit or obtain any advantage in relationto the application of this Act as a result of the operation of anyagreement, scheme, arrangement, understanding, transaction,course of conduct or coarse of business that would not havebeen entered into or carried out if the company had not paidthe amount in a dividend;

(c) where the amount was paid before the last day of that periodof two months, the affairs or business operations of the companywere, during the part of that period of two months that followedthe day on which the amount was paid, managed or conductedwithout proper regard to the rights, powers or interests of con-tinuing shareholders in the company; or

(d) where the amount was paid otherwise than on the first day orthe last day of that period of two months, at any time during thepart of that period of two months that followed the day on whichthe amount was paid the voting power in the company was,either directly or through one or more interposed companies,trustees or partnerships, controlled by a person who did not,either directly or through one or more interposed companies,trustees or partnerships, control the voting power in the companyat all times during the part of that period of two months thatcommenced on the first day of that period and ended on the dayon which the amount was paid., and that person acquired thecontrol of that voting power for the purpose, or for purposesthat included the purpose, of receiving any benefit or obtainingany advantage in relation to the application of this Act or ofsecuring that another person would receive such a benefit orobtain such an advantage.

" (2) Paragraph (a) of sub-section (l) applies notwithstanding thatthe income was derived by the company in the course of ordinary familyor commercial dealing but that: paragraph does not apply where thecontinuing shareholders will benefit from the derivation of the incometo an extent that the Commissioner considers to be fair and reasonablehaving regard to their rights and interests in the company.

" (3) Without limiting the generality of paragraph (b) of sub-section (I), a person shall be deemed, for the purposes of that paragraph,to receive a benefit or obtain an advantage in relation to the applicationof this Act if the person is not liable to pay income tax in respect of ayear of income, or the liability of the person to pay income tax in respectof a year of income is reduced, by reason that the person has not derivedincome that the person would have derived if the agreement, scheme,arrangement, understanding, transaction, course of conduct or courseof business had not been entered into or carried out.


" (4) Paragraph (b) of sub-section. (1) applies notwithstanding thatthe agreement, scheme, arrangement, understanding, transaction, courseof conduct or course of business was entered into or carried out in thecourse of ordinary family or commercial dealing but that paragraph doesnot apply in relation to a benefit or advantage that is received or obtainedby a person who had a shareholding interest in the company duringthe part of the period of two months that followed the day on which theamount was paid, being a benefit or advantage that the Commissionerconsiders to be fair and reasonable having regard to that shareholdinginterest.

" (5) For the purposes of this section(a) a person has a shareholding interest in a company if he is the

beneficial owner of, or of an interest in, any shares in the company;and

(b) where a person has a shareholding interest in a company thathas a shareholding interest in another company (including ashareholding interest that the company has in that other companyby any other application or applications of this paragraph) thatperson shall be deemed to have a shareholding interest in thatother company.

" (6) For the purposes of the application of this section in relationto an amount paid in a dividend by a company, a reference in this sectionto continuing shareholders in the company shall—

(a) if sub-section (5) of section 105A applies for the purpose of deter-mining whether the amount is to be taken into account in as-certaining whether the company is deemed to have made asufficient distribution in relation to the year of income—be read asa reference to persons referred to in sub-section (5) of section105A ; and

(b) if sub-section (9) of section 105A applies for the purpose referredto in paragraph (a)—be read as a reference to persons referred toin sub-section (9) of section 105A.

" (7) In determining for the purposes of this section whether theaffairs or business operations of a company were managed or conductedas mentioned in paragraph (c) of sub-section (1), regard shall be had toany act or thing done in the course of the management or conduct ofthose affairs or business operations. irrespective of the purpose or purposesfor which that act or thing was done and notwithstanding that the doingof that act or thing took place in the course of ordinary family orcommercial dealing.

" (8) For the purposes of this section, it shall be taken that—(a) income would not have been derived by a company if a particular

act had not been done;(b) income would have been derived by a person if a particular act

had not been done; or


(c) an agreement, scheme, arrangement, understanding, transaction,course of conduct or course of business would not have beenentered into or carried out if a particular act had not been done,


" (9) A reference in sub-section (8) to the doing of an act includes areference to the happening of an event or the existence of a matter orcircumstance,

Dividend to (1) Subject to sub-section (2), where—may betaken into (a) an amount paid in a dividend by a private company during theaccount first two months of the period that is the prescribed period incompany relation to the year of income, other than a dividend paid on thecamps on last day of that period of two months, would not, but for thissamebusiness. section, by reason of a change that has taken place in the beneficial

ownership of shares in the company or in any other company, betaken into account in ascertaining whether the company is deemedto have made a sufficient distribution in relation to the year ofincome;

(b) the first-mentioned company carried on at all times during thepart of that period of two months that followed the day on whichthe amount was paid the same business as it carried on immediatelybefore the change referred to in paragraph (a) took place; and

(c) the first-mentioned company did not, at any time during that partof the period of two months, derive income from a business of akind that it did not carry on, or from a transaction of a kind thatit had not entered into in the course of its business operations,before the change took place,

sub-sections (5), (7) and (9) of section 105A and section 105AAA do notprevent the amount from being so taken into account.

" (2) Sub-section (1) does not apply in respect of an amount paid ina dividend by a private company during the first two months of the periodthat is the prescribed period in relation to the year of income if—

(a) before the change referred to in that sub-section took place, thecompany commenced to carry on a business that it had notpreviously carried on, or entered into, in the course of its businessoperations, a transaction of a kind that it had not previouslyentered into; and

(b) the company commenced to carry on that business or enteredinto that transaction for the purpose, or for purposes that includedthe purpose, of securing that an amount that the company hadpaid, or might pay, in a dividend would be taken into account byvirtue of sub-section (1), in whole or in part, in ascertaining


whether the company is deemed to have made a sufficient distri-bution in relation to the year of income.

" 105AAc. For the purposes of sections 105A, 105AAA and 105AAB— specialprovisions(a) where a private company paid, in the year of income in which it relating to

was incorporated, a dividend to which sub-section (2) of section year ofincorporation105A applies—a reference to the first two months of the period or windingup

that is the prescribed period in relation to the company in relation of company.to a year of income shall, in relation to the year of income inwhich the company was incorporated, be read as a reference tothe period that commenced on the day on which the companywas incorporated and ended on the last day of that year of income;

(b) where a private company was incorporated during the last twomonths of a year of income (excluding the case where the companywas incorporated on the first day of that period of two months)—a reference to the first two months of the period that is the pre-scribed period in relation to the company in relation to a year ofincome shall, in relation to the year of income in which thecompany was incorporated, be read as a reference to the periodthat commenced on the day on which the company was incor-porated and ended on the last day of that year of income; and

(c) where a private company is wound up during the last two monthsof a year of income (excluding the case where the company iswound up on the first day of that period of two months)—areference to the first two months of the period that is the prescribedperiod in relation to the company in relation to a year of incomeshall, in relation to the year of income in which the company waswound up, be read as a reference to the period that commencedon the first day of that prescribed period and ended on the dayon which the company was wound up.".

18. Section 106 of the Principal Act is amended—(a) by omitting from sub-section (1) the words " and dividends to

which sub-section (3) of section one hundred and five A of thisAct applies " and substituting the words ", dividends to whichsub-section (3) of section 105A applies and dividends that, byvirtue of sub-sections (5) to (11), inclusive, of that section orsection 105AAA, are not to be taken into account in ascertainingwhether the company is deemed to have made a sufficient distri-bution in relation to the first-mentioned year of income "; and

(b) by adding at the end thereof the following sub-section :—" (5) This section has effect subject to sections 106A, 1061,

106c and 106D.".

19. After section 106 of the Principal Act the following sections areinserted:—

" 106A. (1) In this section and sections 106n, 106c and 106D — notional(a) a reference to a notional dividend that is deemed to have been dividends.

paid by a private company during the period that is the prescribed

ExcessdistributionscarriedForward.


period in relation to a year of income shall be read as a referenceto an amount that is deemed, by virtue of sub-section (2) ofsection 106, to be a dividend paid by the company during thatperiod; and

(b) a reference to a dividend paid by a private company during theperiod that is the prescribed period in relation to a year of incomeshall (except in the expression ' notional. dividend ') be read asnot including a reference to a notional dividend that is deemedto have been paid by the company during that period.

" (2) For the purposes of sub-section (3) and sections 106b, 106c and106D, a notional dividend that is deemed to have been paid by a privatecompany during the period that is the prescribed period in relation to ayear of income shall be treated as if it consisted of the separate dividendsor parts of dividends by reason of the payment of which the notionaldividend is so deemed to have been paid.

" (3) In determining whether a private company has made an excessdistribution for a year of income and in calculating the amount of thatexcess distribution--

(a) any dividends paid by the company during the period that is theprescribed period in relation to that year of income shall be takeninto account in the order in which those dividends were paid andshall be so taken into account before any notional dividend thatis deemed to have been paid by the company during that periodis taken into account; and

(b) where such a notional dividend is taken into account—thenotional dividend shall be taken into account by successivelyapplying the dividends or the parts of the dividends constitutingthat notional dividend in the order in which those dividendswere paid.

" (4) For the purposes of the application of this section and sections106n, 106c and 106D in respect of a prescribed period in which a privatecompany was wound up, any part of that period that occurred after theday on which the company was wound up shall be treated as not formingpart of that period.

Dividendsnot to betaken intoaccountunless thereis substantialcontinuity ofbeneficialownershipof shares incompany.

" 106b. (1) Notwithstanding section 106 but subject, to the followingprovisions of this section and to sections 106c and 106D, an amount paidin a dividend by a private company during the period that is the prescribedperiod in relation to a year of income shall not be included, in whole orin part, in any notional dividend that is deemed to have been paid by thecompany during the period that is the prescribed period in relation to alater year of income unless the company satisfies the Commissioner that,at all times during the last-mentioned prescribed period, shares in thecompany carrying between them--

(a) the right to exercise more than one-half of the voting power inthe company;


(b) the right to receive more than one-half of any dividends that maybe paid by the company; and

(c) the right to receive more than one-half of any distribution ofcapital of the company,

were beneficially owned by persons who, at all times during the first-mentioned prescribed period, beneficially owned shares in the companycarrying rights of those kinds.


purpose of determining whether an amount paid in a dividend bya private company during the period that is the prescribed periodin relation to a year of income is to be included, in whole or inpart, in any notional dividend that is deemed to have been paidby the company during the period that is the prescribed period inrelation to a later year of income;

(b) during the whole or any part of the first-mentioned prescribedperiod, or during the whole or any part of the second-mentionedprescribed period, another company or other companies bene-ficially owned all or any of the shares in the first-mentionedcompany or an interest or interests in all or any of those shares;and

(c) the first-mentioned company requests the Commissioner withinone month after the expiration of the second-mentioned prescribedperiod, or within such further period as the Commissioner allows,that sub-section (3) should apply for the purpose referred to inparagraph (a) or the Commissioner considers it reasonable thatthat sub-section should apply for that purpose,

then sub-section (3) applies for that purpose in lieu of sub-section (1)." (3) Where, by virtue of sub-section (2), this sub-section applies for

the purpose of determining whether an amount paid in a dividend by aprivate company (in this sub-section referred to as the ' relevant company ')during the period that is the prescribed period in relation to a year ofincome is to be included, in whole or in part, in any notional dividendthat is deemed to have been paid by the company during the period thatis the prescribed period in relation to a later year of income, then, not-withstanding section 106 but subject to sub-section (5) and sections 106cand 106n, that amount shall not be included, in whole or in part, inany such notional dividend unless the Commissioner is satisfied, orconsiders that it is reasonable to assume, that—

(a) at all times during the second-mentioned prescribed period thevoting power in the relevant company was, either directly orthrough one or more interposed companies, trustees or partner-ships, controlled, or capable of being controlled, by a person notbeing a company, or by two or more persons not being companies,who, either directly or through one or more interposed companies,trustees or partnerships, controlled, or was or were capable ofcontrolling, the voting power in the relevant company at all timesduring the first-mentioned prescribed period;


(b) a person not being a company who had, or two or more personsnot being companies who had between them, at all times duringthe second-mentioned prescribed period a right to receive, directlyor indirectly, for his or their own benefit more than one-half ofany dividends that might be paid by the relevant company would,if the relevant company had paid a dividend at any time duringthe first-mentioned prescribed period, have had, or have hadbetween them, as the case may be, a right to receive, directlyor indirectly, for his or their own benefit more than one-half ofthat dividend; and

(c) a person not being a company who had, or two or more personsnot being companies who had between them, at all times duringthe second-mentioned prescribed period a right to receive,directly or indirectly, for his or their own benefit more than one-half of any distribution of capital of the relevant companywould, if the relevant company had made a distribution of capitalat any time during the first-mentioned prescribed period, have had,or have had between them, as the case may be, a right to receive,directly or indirectly, for his or their own benefit more than one-half of that distribution of capital.

" (4) For the purposes of this section, a person shall be deemed to bea person who had, or would have had, a right to receive indirectly forhis own benefit the whole or a particular fraction of a dividend that mightbe, or might have been, paid by a company or of a distribution, of capitalof a company, or two or more persons shall be deemed to be persons whohad, or would have had, between them a right to receive indirectly fortheir own benefit the whole or a particular fraction of such a dividend ordistribution of capital, if, in the event of a payment of a dividend by thecompany, or of a distribution of capital of the company, the person orpersons would, otherwise than as a shareholder or shareholders of thecompany or as a trustee or trustees, receive or have received the wholeor that fraction, as the case may be, of that dividend, or of that distributionof capital, if there had been successive distributions of the relative parts ofthat dividend, or of that distribution of capital, to and by each of anycompanies or trustees interposed between the company paying the divi-dend, or making the distribution of capital, and that person or thosepersons.

(5) Subject to sections 106c and 106c, where an amount paid in adividend by a private company during the period that is the prescribedperiod in relation to a year of income is not, by virtue of sub-section (1)or sub-section (3), as the case may be, to be included, in whole or in part,in a notional dividend that is deemed to have been paid by the companyduring the period that is the prescribed period in relation to a later yearof income but the company satisfies the Commissioner that that sub-sectionwould not have prevented the amount from being so included if regardwere had, for the purposes of that sub-section, to part only of the prescribed


period first-mentioned in that sub-section, the Commissioner may treatthat amount as being included in that notional dividend.

" (6) Section 80B applies for the purposes of the application of sub-sections (1), (3) and (5) in determining whether an amount paid in adividend by a private company during the period that is the prescribedperiod in relation to a year of income is to be included, in whole or in part,in a notional dividend that is deemed to have been paid by the companyduring the period that is the prescribed period in relation to a later yearof income in like manner as that section applies for the purposes of theapplication of section 80A in determining whether a loss incurred by acompany in a year before the year of income is to be taken into accountfor the purposes of section 80 or section 801A but, for the purposes ofsection 80B as so applying--

(a) a reference in that: section to the year in which the loss was incurredshall be read as a reference-

(i) in the case of the application of that section. in relation tosub-sections (1) and (3)—to the prescribed period in whichthe amount was paid; and

(ii) in the case of the application of that section in relation tosub-section (5)—to the part of the prescribed period inwhich the amount was paid that commenced on the dayon which the amount was paid and ended at the expirationof that prescribed period ;

(b) a reference in that section to the year of income shall be read as areference to the period that is the prescribed period in relation tothe later year of income; and

(c) the reference in paragraph (c) of sub-section (5) of that section tothe purpose of enabling the company to take into account forthe purposes of section 80 or section 80AA a loss that the com-pany had incurred, or might incur, shall he read as a referenceto the purpose of securing that an amount that was, or mightbe, paid in a dividend by the company in the period that isthe prescribed period in relation to a year of income would beincluded, in whole or in part, in a notional dividend that is, ormight be, deemed to be paid by the company during the periodthat is the prescribed period. in relation to a later year of income.

" 106c. (1) Notwithstanding section 106B but subject to section 106D,an amount paid in a dividend by a private company during the periodthat is the prescribed period in relation to a year of income shall not beincluded, in whole or in part, in a notional dividend that is deemed to havebeen paid by the company during the period that is the prescribed periodin relation to a later year of income if—

(a) during that later year of income the company derived income thatthe company would not have derived if the company had notmade an excess distribution for the year of income that

immediately preceded that later year of income;

Dividendsincludedin excessdistributionsnot to betaken intoaccount incertaincitcurn-stanc.


(b) a person other than the company will, either directly or indirectly,receive any benefit or obtain any advantage in relation to theapplication of this Act as a result of the operation of any agree-ment, scheme, arrangement, understanding, transaction, course ofconduct or course of business that would not have been enteredinto or carried out if the company had not made an excessdistribution for the year of income that immediately preceded thatlater year of income;

(c) the affairs or business operations of the company were managedor conducted during the second-mentioned prescribed periodwithout proper regard to the rights, powers or interests of con-tinuing shareholders in the company; or

(d) during the whole or any part of the second-mentioned pre-scribed period the voting power in the company was, eitherdirectly or through one or more interposed companies, trusteesor partnerships, controlled by a person who did not, eitherdirectly or through one or more interposed companies, trustees orpartnerships, control the voting power in the company during thewhole of the first-mentioned prescribed period or, in a case towhich sub-section (5) of section 106b applies, during the part ofthe first-mentioned prescribed period referred to in that sub-section, and that person acquired the control of that voting powerfor the purpose, or for purposes that included the purpose, ofreceiving any benefit or obtaining any advantage in relation tothe application of this Act or securing that another person wouldreceive such a benefit or obtain such an advantage.

" (2) Paragraph (a) of sub-section (1) applies notwithstanding thatthe income was derived by the company in the course of ordinary familyor commercial dealing but that paragraph does not apply where the con-tinuing shareholders will benefit from the derivation of the income to anextent that the Commissioner considers to be fair and reasonable havingregard to their rights and interests in the company.

" (3) Without limiting the generality of paragraph (b) of sub-section(1), a person shall be deemed, for the purposes of that paragraph, toreceive a benefit or obtain an advantage in relation to the application ofthis Act if the person is not liable to pay income tax in respect of a year ofincome, or the liability of the person to pay income tax in respect of ayear of income is reduced, by reason that the person has not derivedincome that the person would have derived if the agreement, scheme,arrangement, understanding, transaction, course of conduct or course ofbusiness had not been entered into or carried out.

" (4) Paragraph (b) of sub-section (1) applies notwithstanding thatthe agreement, scheme, arrangement, understanding, transaction, courseof conduct or course of business was entered into or carried out in thecourse of ordinary family or commercial dealing but that paragraph doesnot apply in relation to a benefit or advantage that is received or obtained


by a person who had a shareholding interest in the company in theprescribed period second mentioned in that sub-section, being a benefitor advantage that the Commissioner considers to be fair and reasonablehaving regard to that shareholding interest.

" (5) For the purposes of this section—(a) a person has a shareholding interest in a company if he is the

beneficial owner of, or of an interest in, any shares in the company;and

(b) where a person has a shareholding interest in a company that hasa shareholding interest in another company (including a share-holding interest that the company has in that other company byany other application or applications of this paragraph) thatperson shall be deemed to have a shareholding interest in thatother company.

" (6) For the purposes of the application of this section in relationto an amount paid in a dividend by a company, a reference in this sectionto continuing shareholders in the company shall—

(a) if sub-section (1) of section 1.06B applies for the purpose ofdetermining whether the amount is to be included in whole or inpart in a notional dividend—be read as a reference to personsreferred to in sub-section (1) of section 106B; and

(b) if sub-section (3) of section 106B applies for the purpose referredto in paragraph (a)—be read as a reference to persons referredto in sub-section (3) of section 106B.

" (7) In determining for the purposes of this section whether theaffairs or business operations of a company were managed or conductedas mentioned in paragraph (c) of sub-section (1), regard shall be had toany act or thing done in the course of the management or conduct ofthose affairs or business operations, irrespective of the purpose or purposesfor which that act or thing was done and notwithstanding that the doingof that act or thing took place in the course of ordinary family or com-mercial dealing.

" (8) For the purposes of this section, it shall be taken that—(a) income would not have been derived by a company if a particular

act had not been done;(b) income would have been derived by a person if a particular act

had not been done; or(c) an agreement, scheme, arrangement, understanding, transaction,

course of conduct or course of business would not have beenentered into or carried out if a particular act had not been done,



(9) A reference in sub-section (8) to the doing of an act includes areference to the happening of an event or the existence of a matter orcircumstance.

Dividend " 106D. (1.) Subject to sub-section (2), where—may betaken into (a) an amount paid in a dividend by a private company during theaccount period that is the prescribed period in relation to a year of incomewherecompany would not, but for this section, by reason of a change that hascarries on takenplace in the beneficial ownership of shares . in the companysantebusiness. or in any other company, be included, in whole or in part, in a

notional dividend that is deemed to have been paid by the com-pany in the period that is the prescribed period in relation to alater year of income;

(b) the first-mentioned company carried on at all times during theperiod that is the prescribed period in relation to the later yearof income the same business as it carried on immediately beforethe change referred to in paragraph (a) took place; and

(c) the first-mentioned company did not, at any time during that last-mentioned prescribed period, derive income from a business of akind that it did not carry on, or from a transaction of a kind thatit had not entered into in the course of its business operations,before the change took place,

sections 106b and 106c do not prevent the amount being so included.

Rebate forexportmarketdevelopmentexpenditure.

" (2) Sub-section (1) does not apply in respect of an amount paid in adividend by a private company during the period that is the prescribedperiod in relation to a year of income if—

(a) before the change referred to in that sub-section took place, thecompany commenced to carry on a business that it had not pre-viously carried on, or entered into, in the course of its businessoperations, a transaction of a kind that it had not previouslyentered into; and.

(b) the company commenced to carry on that business or enteredinto that transaction for the purpose, or for purposes that in-cluded the purpose, of securing that an amount that the companyhad paid, or might pay, in a dividend, would be included byvirtue of sub-section (1), in whole or in part, in a notional dividendthat would be deemed to have been paid by the company duringthe period that is the prescribed period in relation to a later yearof income,".

20. Section 160AC of the Principal Act is amended by omitting fromsub-section (3) the words " the first day of July, One thousand ninehundred and seventy-three " and substituting the words " 1st July, 1974".


21. Section 170 of the Principal Act is amended— Amendmentof assess-

(a) by omitting sub-section (10) and substituting the following merits.sub-section:-

" (10) Nothing in this section prevents the amendment, atany time, of an assessment for the purpose of giving effect tothe provisions of section 23AB, section 36AA, sub-section (2a) ofsection 47, sub-section (7) or (8) of section 51Ac, sub-section (7)of section 53A, sub-section (3) of section 53B, section 53D, sub-section (2D) of section 59, section 77c, section 77D, sub-section(1 c) of section 82H, sub-section (3) of section 82s, section 105AA,sub-section (2) of section 122a, sub-section (2) of section 124DE,sub-section (9) or (15) of section 160Ac or sub-section (2) ofsection 221YRA."; and

0-0 by adding at the end thereof the following sub-section:—

" (13) Notwithstanding anything in any other provision ofthis Act, the Commissioner may amend an assessment for thepurpose of giving effect to the provisions of section 63B, sub-sections (5) to (11.), inclusive, of section SOB (including thoseprovisions as applied by any other provision of this Act), section

80DA, section 105AAA or section 106c if the amendment is madewithin six years after the date upon which the tax became due andpayable under the assessment.",

22. The Principal Act is amended as set out in the Schedule.

23. (1) The amendment made by section 5 applies to assessments inrespect of income of the year of income that commenced on 1st July, 1971,and in respect Cif income of a ll subsequent years of income.

(2) The amendments made by sections 4, 6 and 7, paragraphs 9 (a),(c), (d), (e). (f), (g) and (h), and. sections 11. 12 and 13 apply to assessmentsin respect of income of the year of income that commenced on 1st July,1972, and in respect of income of all subsequent years of income.

(3) The amendments made by section. 8, paragraph 9 (b) and section 10apply to assessments in respect of income of the year of income thatcommences on 1st July, 1973, and in respect of income of all subsequentyears of income,

(4) The amendments made by sections 9, 15, 16 and 17 apply for thepurpose of determining whether a private company is deemed, for thepurposes of Division 7 of Part Iii of the Principal Act as amended bythis Act, to have made a sufficient distribution in relation to the year ofincome that commenced on 1st July, 1972, or in relation to a subsequentyear of income.

Formalamendments

Applicationof amend-ments


(5) The amendment made by paragraph 18 (a) applies for the purposeof determining whether a private company has made an excess distributionfor the year of income that commenced on 1st July, 1972, or for a sub-sequent year of income.

(6) The amendments made by section 9, paragraph 18 (b) and section 19apply for the purpose of determining whether the amount of any excessdistribution made by a private company for a year of income is deemed,for the purposes of Division 7 of Part III of the Principal Act as amendedby this Act, to be a dividend paid during the period that is the prescribedperiod in relation to the year of income that commenced on 1st July, 1971,or in relation to a subsequent year of income.

Transitionalprovisions.

24. (1) In relation to assessments in respect of income of the year ofincome that commenced on 1st July, 1972, section 63A of the PrincipalAct as amended by this Act has effect as if there were substituted inthat section for the words " more than one-half " (wherever occurring)the words " not less than two-fifths ".

(2) If a company has, in pursuance of section 18 of the Income TaxAssessment Act 1936, or of that Act as amended and in force at any time,adopted in lieu of the year that ends on 30th June, 1973, an accountingperiod that ended or ends before that date, then, for the purposes of theapplication of section 63A or section 80A of the Principal Act as amendedby this Act in relation to the accounting period of the company for thenext financial year, in so far as that last-mentioned accounting periodconstitutes a year of income for the purposes of that section, the Com-missioner may, having regard to the persons who beneficially owned sharesin the company carrying rights referred to in that section, or had rightsreferred to in that section, during the part of that accounting period thatcommenced on the first day of that accounting period and ended on 30thJune, 1973, treat a person who beneficially owned shares in the companycarrying rights referred to in that section, or had any rights referred to inthat section, at all times during the part of that accounting period thatoccurred after 30th June, 1973, as having beneficially owned shares inthe company carrying rights referred to in that section, or as having hadrights referred to in that section, at all times during that accounting period.

(3) In relation to assessments in respect of income of the year ofincome that commenced on 1st July, 1972, sub-section 80B (2) of thePrincipal Act has effect as if a reference in that sub-section to the allot-ment of shares in a company did not include a reference to an allotmentthat took place after 11th April, 1973.

(4) In relation to assessments in respect of income of the year ofincome that commenced on 1st July, 1972-

(a) sub-sections 80B (9) and 80DA. (1) of the Principal Act as amendedby this Mt have effect as if the references in those sub-sections tosub-section 80A (5) of that Act as so amended were references tosub-section 80A (2) of the Principal Act; and


(b) section SODA of the Principal Act as amended by this Act haseffect for the purposes of the application of that section in relationto a loss, or a part of a loss, incurred by a company as if a referencein that section to continuing shareholders in the company were —

(i) in a case to which sub-paragraphs (ii) and (iii) do notapply—a reference to persons referred to in sub-section 80A(1) of the Principal Act;

(ii) if section 80c of the Principal Act applies for the purposeof determining whether the loss, or the part of the loss, isto be taken into account for the purposes of section 80 orsection 80AA of that Act—a reference to persons referred toin paragraph 80c (1) (b) of the Principal Act; or

(iii) if section 80D of the Principal Act applies in relation tosection 80A of that Act for the purpose of determiningwhether the loss, or the part of the loss, is to be so takeninto account—a reference to persons referred to in sub-section 80A. (1) of the Principal Act as affected by section80D of that Act.

(5) Where—(a) a debt owing to a company that was written off by the company

as a bad debt during a year of income before the year of incomethat commenced on 1st July, 1972, was an allowable deductionin the assessment of the company in respect of income of a yearof income;

(b) by reason that the debt was such an allowable deduction-(i) the company incurred a loss for the purposes of section 80

or section 80AA of the Principal Act as amended by thisAct that the company would not otherwise have incurred ;or

(ii) a loss for the purposes of section 80 or section 80AA ofthe Principal Act as so amended that the company wouldotherwise have incurred was increased ; and

(c) if the debt had been written off as a bad debt during the year ofincome that commenced on 1st July, 1972, the debt would nothave been an allowable deduction. in the assessment of the com-pany in respect of income of that year of income,

then, so much of the amount of the loss as has not been taken into accountfor the purposes of section 80 or section 80AA of the Principal Act inrespect of a year of income before the year of income that commenced on1st July, 1972 (in this sub-section referred to as the " residue of the loss ")—

(d) in a case to which sub-paragraph (b) (i) applies—shall not be takeninto account for the purposes of section 80 or section 80AA of thePrincipal Act as amended by this Act in respect of the year ofincome that commenced on 1st July, 1972, or any later year ofincome; or

No. 51 income Tax. Assessment 1973

(e) in a case to which sub-paragraph (b) (ii) applies—may be takeninto account for the purposes of section 80 or section 80AA of thePrincipal Act as so amended in respect of the year of income thatcommenced on 1st July, 1972, or a later year of income only tothe extent (if any) to which the residue of the loss exceeds theamount of the increase,

(6) For the purposes of the application of the amendment made bysection 19 as that amendment applies in accordance with sub-section23 (6)-

(a) the provisions of sub-section 106A (3) of the Principal Act asamended by this Act; and

(b) the provisions of sub-section 106A (2) of that Act as so amendedin so far as they apply for the purposes of the provisions ofsub-section 106A (3),

shall be deemed to have been in force at all times before the year ofincome that commenced on 1st July, 1971, and to have applied to assess-ments of private companies in respect of income of years of incomebefore that year of income.

(7) For the purpose of determining whether the amount of any excessdistribution made by a private company for the year of income that endedon 30th June, 1971, is deemed for the purposes of Division 7 of Partof the Principal Act as amended by this Act to be a dividend paid duringthe period that is the prescribed period in relation to the year of incomethat ended on 30th June, 1972, section 106n of the Principal Act asamended by this Act has effect as if there were substituted in that sectionfor the words " more than one-half " (wherever occurring) the words" not less than two-fifths ".

(8) For the purposes of the application of section 106a of the PrincipalAct as amended by this Act in determining whether the amount of anyexcess distribution made by a private company for the year of incomethat ended on 30th June, 1972, is deemed for the purposes of Division 7of Part III of the Principal Act as amended by this Act to be a dividendpaid during the period that is the prescribed period in relation to theyear of income that ends on 30th June, 1973, being a prescribed periodthat, in the case of that company, commences before 1st July, 1973, theCommissioner may, having regard to the persons who beneficially ownedshares in the company carrying rights referred to in that section, or hadrights referred to in that section, during the part of that prescribed periodthat commenced on the first day of that prescribed period and endedon 30th June, 1973, treat a person who beneficially owned shares in thecompany carrying rights referred to in that section, or had rights referredto in that section, at all times during the part of that prescribed periodthat occurred after 30th June, 1973, as having beneficially owned sharesin the company carrying rights referred to in that section, or as havinghad rights referred to in that section, at all times during that prescribedperiod.


(9) Paragraph 63B (1) (d) of the Principal Act as amended by this Actdoes not prevent a debt owed to a company being an allowable deductionin the assessment of the company in respect of income of the year of in-come that commenced on 1st July, 1972, if the person referred to in thatparagraph did not have, at any time during the year of income, a right toreceive, directly or indirectly, for his own benefit more than three-fifths ofany dividend that might be paid by the company or more than three-fifthsof any distribution of capital of the company.

(10) Paragraph 63n (1) (e) of the Principal Act as amended by this Actdoes not prevent a debt owed to a company being an allowable deductionin the assessment of the company in respect of income of the year of incomethat commenced on 1st July, 1972, if the person referred to in that para-graph did not have, at any time during the part of the year of income thatfollowed the day on which the debt was incurred, a right to receive,directly or indirectly, for his own benefit more than three-fifths of anydividend that might be paid by the company or more than three-fifths ofany distribution of capital of the company.

(1 1) Paragraph 80DA (1) (d) of the Principal Act as amended by thisAct does not prevent a loss, or a part of a loss, incurred by a companybeing taken into account, for the purposes of section 80 or section 80AAof the Principal Act as so amended, in the assessment of the company inrespect of income of the year of income that commenced on 1st July,1972, if the person referred to in that paragraph did not have, at anytime during the year of income, a right to receive, directly or indirectly,for his own benefit more than three-fifths of any dividend that might bepaid by the company or more than three-fifths of any distribution ofcapital of the company.

(12) Paragraph 106c (1) (d) of the Principal Act as amended by thisAct does not prevent the amount of an excess distribution made by aprivate company for the year of income that ended on 30th June, 1971,being deemed, for the purposes of Division 7 of Part III of the PrincipalAct as so amended, to be a dividend paid during the period that is theprescribed period in relation to the year of income that ended on 30thJune, 1972, if the person referred to in that paragraph did not have, atany time during that prescribed period, a right to receive, directly or in-directly, for his own benefit more than three-fifths of any dividend thatmight be paid by the company or more than three-fifths of any distributionof capital of the company.

(13) For the purposes of this section, a person shall be deemed tohe a person who had, or would have had, a right to receive indirectlyfor his own benefit the whole or a particular fraction of a dividend thatmight be, or might have been, paid by a company or of a distributionof capital of a company, or two or more persons shall be deemed to bepersons who had, or would have had, between them a right to receiveindirectly for their own benefit the whole or a particular fraction of sucha dividend or distribution of capital, if, in the event of a payment of adividend by the company, or of a distribution of capital of the company,


Transitionalprovisionsin relationto capitalexpenditureon mining.

the person or persons would, otherwise than as a shareholder or share-holders of the company or as a trustee or trustees, receive or have receivedthe whole or that fraction, as the case may be, of that dividend, or of thatdistribution of capital, if there had been successive distributions of therelative parts of that dividend, or of that distribution of capital, to andby each of any companies or trustees interposed between the companypaying the dividend, or making the distribution of capital, and thatperson or those persons.

(14) Where, but for this sub-section--(a) there would be an undistributed amount in relation to a private

company in relation to the year of income that ended on 30thJune, 1972; or

(b) the undistributed amount in relation to a private company inrelation to that year of income would be increased,

by reason that the whole or any part of an excess distribution made by thecompany for an earlier year of income is not, by reason of the amendmentmade by section 19, included in a notional dividend that is deemed to havebeen paid by the company during the period that is the prescribed periodin relation to the first-mentioned year of income, then, any dividends paidby the company during the period that commenced at the expiration ofthat prescribed period and ends on 15th June, 1973, to persons who wereshareholders in the company at the expiration of that prescribed periodand continued to be shareholders in the company until the dividendswere paid, shall, if the company elects not later than 30th June, 1973, bynotice in writing to the Commissioner, that this sub-section should applyin relation to the company, be deemed, to the extent to which thosedividends do not exceed the undistributed amount or the amount of theincrease, as the case may be-

(c) to have been paid by the company during that prescribed period;and

(d) not to have been paid by the company in any period that is theprescribed period in relation to another year of income in so faras the time of payment of those dividends is relevant for deter-mining whether the company is deemed, for the purposes ofDivision 7 of Part III of the Principal Act as amended by thisAct, to have made a sufficient distribution, or to have paid individends an amount in excess of the lowest amount that wouldhave been a sufficient distribution, in relation to that other yearof income.

25. (I) Section 21 of the Income Tax Assessment Act (No. 2) 1968 isamended by adding at the end thereof the following sub-section:-

" (9) Where—(a) a taxpayer who is a party to an agreement referred to in sub-

section (8) with the Commonwealth or a State has, with the con-sent of the Commonwealth or of the State, as the case may be,assigned to one or more other taxpayers rights under that agree-ment;


(b) capital expenditure of a kind referred to in. paragraph (d) of thatsub-section is incurred by the assignee, or any of the assignees, asthe case may be; and

(c) if the assignment had not been made and the expenditure hadbeen incurred by the assignor, any of the expenditure would, byvirtue of sub-section (8), have been required to be deemed to beallowable capital expenditure within the meaning of section 122Aof the Income Tax Assessment Act 1936-1968 (either generally orfor the purpose specified in sub-section (2) of this section),

sub-section (8) applies in relation to that expenditure as if the assignee orassignees had been a party or parties to the agreement in lieu of theassignor.".

(2) The amendment made by sub-section (1) shall be deemed to havehad effect from and including 25th June, 1968.

(3) The Income Tax Assessment Act (No. 2) 1968, as amended by thissection, may be cited as the Income Tax Assessment Act 1968-1973.


SCHEDULE

Section 22

FORMAL AMENDMENTS

1. The following provisions of the Principal Act are amended by omitting any numberexpressed in words that is used, whether with or without the addition. of a letter or letters,to identify a section of that Act or of another Act, and substituting that number expressedin figures:-

Sections 3, 4, 6 (1) (definitions of " apportionable deductions " and " withholding tax "),6c (2), 6o (2). 10 (3), 23A0 (1) (definition of " the prescribed area "), (6), (7) and (9),23A (3), 23c (7), 23s (2), 24A, 26 (I), (k) and (I). 26A0 (5), 260A (2), 36A (1) and (2),37 (2), 44 (1), (IA), (2) (d), (2c) and (6), 45`1) and (5), 46 (7A) and (9), 46A (13) and (16),51Ac (1) (definitions of " prescribed agent ", " prescribed outgoings " and " the taxsaving "), (2), (3) and (8), 51A (1) and (3) (definitions of " employee " and " living-away-from-home allowance "), 53A (5) and (8), 73c (1), 53u (1) and (4), 53E (1), 54 (2).56 (3), 56A (2), 57, 57AA (2), (3) and (8). 57Ab (1), (2). (4) and (7), 58 (1), (4) and (6),59AB (1) and (7), 60 (1) and (1A), 61, 62 (2), 62AA (10) and (11), 62Ab (3), (7) and (8),64A (1) and (3), 65 (i 0) and (in). 69 (3), 70 (1) (definition of " telephone line "), 70 (3)and (4), 72 (1), 73.E (5), 73A (6) (definition of " consideration received or receivable inrespect of the disposal, loss or destruction "). 77a (3), (5) and (6), 77c (3) and (4),77o (I) (definitions of " asset " and " mining or prospecting outgoings "j, (11), (16), (18)and (20). 78 (1), 79 (1) (definition of " superannuation fund "), (2) (g), (13), (141, (15) and(16). 79A (1), (2) and (3A), 79a (2), (3A), (4) and (5 .0), 79c, 80 (3) and (3A), 80Ac,800 (5) (c), 80a (2). 82 (3), 82AAA (3), 82AAR (.2), 32AAci (7), (8) and (1(i), 82AAJ (1), (2),(3), (6) and (7), 82AAL., 82AAN, 82AAP. 82AAR, 82D (1) and (3), 82a, 82.r (2), 82r (3)(definition of " dependant "), 82s (6) (definition of " student "), 82JAA, 82e, 82o (2)and (3), 82a (5) and (6), 82s (1), 83 (1) (definition of " premium "), 83 (2), 83AA (2).(3), (4) and (5), 86 (2), 88A (1), 88n, 90 (definitions of " net income " and " partnershiploss "), 94 (2) (h), (c) and (e), 94 (4), (11) and (12), 94 (13) (definition of " prescribeddeductions "), 95, 99 (2), 99a (4) and (5), 102n (4), 103 (1) (definitions pf " special funddividends ", " the distributable income ", " the relevant holding company or holdingcompanies " and " the retention allowance "), 103 (4), 103A (2) (h) and (d), 104, 105c (I)(b), 106 (4) (a), 107 (1) (c), 107A, 110 (definition of " exempt superannuation fund "), 110A(12), 112A (1), 115 (1) and (3),115A (2) and (5), 116A (0,11613(2), 116c,120 (1), 121A, 1210(definition of " investment income "), 121BA (I) and (5), 121c (1.A), (1), (2), (3) and (12),

121CA, 121(-0, 121o,I 21.0c,121DD, 121st, 121e(1)(b), 122 (1) (definition of " prescribedpurposes "), 122A (1), 122e (2), (4) and (6), 12 2 c, 1220 (3), 122r (3), 122o (5), 122),122K (4), I 22m, 122N (2) and (3), 12217. 122Q, 123 (2) (a), 123c (I), (4), (5) and (6),123s (2), 124DD (a) (ii), 124DF (3), 124DF, 124DH (3), 124DM (2), 124DN (2), 124o (4),124m (4), 124jc (2) (b), 124r (1) (a), 125, 126 (3), 127 (2) (b), 128A (1) (definition of" interest "), 128A (4), 128a (3), 128o, 128a (I) (b) (iii) and (d), 128m, 128N (1.) (definitionof " the relevant part"), 128n (2) (a) and (c), 128a (5), 128s (1) (c), 1280, 135A, 148 (9)(a),158, 158AA (4), 158A0, 158D (5), 159 (2) and (4) (a) (1) and (ii), 159A (3), (4) and (7),1590 (1) and (3), 159c (6), 1590 (2), 159c (1), 160 (1) (c) and (5), 160A0 (1) (a), 160ABA (I),160Ac (1) (definitions of " prescribed agent " and " prescribed outgoings "), 160Ac (2),(3) (a) and (h), (10) (a) (ii) and (h) and (15) (b), .160A5 (2), 160AF (2) and (5), 160AG (1),

160AI (1) (b), 160AL (1), 160AN (1A), 160AO, 170 (9A), (10A), (II) and (12), 193 (2), 221„221A (1), 221c (6), 221r (2), 221r (5) (d) and (8), 221G (2), 221n (1), 221), (1) and(ja),221s (4), 221YA (1) (definitions of " estimated taxable income " and " salary or wages "),221 YA (1A) and (2), 221YDA (1) (e) and (2) (b), 221YDB (1 A), 221YDC, 221YK (1) (definitionof " interest "), 221YK (2), 221YN (1), 221YP (1) and (2), 221YQ (1) and (4), 221YR (2)and (3), 221YRA (1), 221YS, 221Yv, 251M (1) and (3), 251o, 2510.

2. The following provisions of the Principal Act are amended by omitting the words " ofthis Act ", " to this Act ", " of this Part ", " of this section ", " of this stib-section", " ofthis paragraph" and " of this definition " (wherever occurring):-

Sections 6 (1) (definitions of " apportionable deductions ", " concessional deductions "," dividend ", " petroleum ", " relative " and " withholding tax "), 6A (2) (c), 6c (2)and (4), 6D (2) and (4), 7 (2), 10 (3), 16 (5) and (5.4), 23 (c) and (g), 23A5 (I) (definition of


SCHEDULE-continued

" the prescribed area "), (6), (7) and (9), 23A (3), 23F (4), (7), (8), (9), (10), (13), (14) and(18), 24A, 26 (f), (k) and (1), 26AB (5), 26n (4), (5) and (6), 26BA (2) (b), (5) and (8), 31A (5),36 (3), (4) . and (7), 36AAA (2) (c) and (d), (3), (4), (5), (6), (7), (9), (10), (11) (a), (12),(13) (c) and (14), 36AA (3), (4) and (6), 36A (1), (2) and (4), 37 (2), 44 (1), (IA), (2c)and (6), 44A (3), 45 (1) and (IA), 46 (6), (7), (8) and (9), 46A (8), (9), (12), (13), (14) (a)and (b), (15) and (16), 51 AA (3), (7), (8), (10), (13) and (14), 51Ac (1) (definitions of " ex-port market development expenditure ", " prescribed agent '', " prescribed outgoings "and " the tax saving ") and (8), 51A (1), 51A (3) (definitions of " employee " and" living-away-from-home allowance "}, 53A (4), (5), (7) and (8), 53b (3), 53c (1), 53D(1) and (4), 53e (1) and (4), 54 (2), 56 (3), 56A (4), 57, 57AA (2) and (6), 57AB (1), (2)and (6), 58 (1) and (4), 59 (2c) and (2d), 59AB (1), (5) and (7), 60 (IA), 61, 62 (2),62AAA (5), (6) and (7), 62AA (4) and (10), 62AB (3) and (7), 64A (1) and (3), 69 (3), 70 (3),72 (3), 73A (5), 73A (6) (definition of " consideration received or receivable in respect ofthe disposal, loss or destruction "), 77B (3), (5) and (6), 77c (3), 77d (1) (definitions of" mining or prospecting outgoings " and " prescribed mining operations "), (3), (6),(7), (8), (9), (10), (11), (12), (14), (16), (18) and (20), 78 (3), (4) and (5), 79 (1) (definitionof " superannuation fund "), (2) (g), (4), (5), (6), (9), (10), (11), (13), (14), (15), (16),(17), (18), (19), (20), (22) and (23), 79A (1), (2), (3A) and (4), 79B (2), (3A), (4), (5A)and (5B), 79c, 80 (3), (3A), (3B) and (4b), 80AA (2) (c) and (d), (8) (b) and (c), 80Ac (1)and (2), 80E (2), 82AAA (3), 82AAF (2), 82AAG (7), (8), (10) and (12), 82AAt (2),

82AAJ, 82AAL, 82AAN, 82AAP, 82B (4), 82B (5) (definition of" separate net income "),82D (1) and (3), 82E, 82E (2), 82E (3) (definition of " dependant "), 82J (6) (definition of

" student "), 82JAA (1), (2) and (3), 82JAA (5) (definition of " scholarship benefits "),82K, 82L. (3) (b), 82E (2) and (3), 82R (5) and (6), 82s (3), (5), (6) and (7), 83 (1) (definitionof " premium "), 83 (2), 83AA (3), 85 (6), 86 (2), 88A (6), 88B (1), (2), (3),(5b), (5c) and(6), 90 (definitions of " net income and " partnership loss "), 94 (2) (b), (c), (d) and(e), (6) (a), (7) and (12) (a), 94 (13) (definition of " prescribed deductions "), 95, 99 (2),99A (3), (4) (a) and (b) and (5), 102b (4), 103 (1) (definitions of " the relevant holdingcompany or holding companies " and " the retention allowance "), 103 (4) (a) and (b),103A (2), (3), (4D) (a) and (b). 104, 105A (3), 105AA (5) (b) (1), 105c (1) and (4), 106 (4)(a), 107A (a) and (b), 110 (definition of " exempt superannuation fund "), 110A (4), (8)and (12), 112A (1) and (3), 115 (1), 115A (2), (3) and (5), 116A (1), 116B (2), 116c, 120,121B (definition of " investment income "), 121BA (4) and (5), 121c (IA), (1), (2), (3) and(7),I21DB, 121DD, 121DE, 121E (1) (b), 122 (1) (definition of " prescribed purposes "),122A (1) (e) (n), 122b (2) (a), (b), (c) and (d) and (4), 122c (1) (c), (d), (e) and (g) and(3), 122d (3), 122f (3), 122g (5), 122i 122K (4), 122m (b), 122N (2) and (3), 1220 (1)to (7), inclusive, 122q (8) (b) and (e), 123, 123c, (1), (4) and (6), 123E (2) , 124DD (a) (ii),124DE (3), 124DF (b), (c), (f ) and (g), I 124DH (3), 124dm (2), 124F (5), 124G (4), 124JA (4),124m (4), 124jc (2) (b), 124P (I), 124R (1) (a), 124U (3) and (4), 12.5, 126 (3), 127 (2) (b),128A (1) (definition of " interest "), 128b (1), (3) and (7), 128D, 128E (3), 128E (1) (e) and(3), 128H (4), 128N (1) (definition of " the relevant part "), 128N (2) (a) and (c), (4)and (5), 128E (1) (c), 1280, 148 (3), (5), (7) and (9) (a), 158, 158A (3), 158AA (4), (5) and(6), 158AB, 158B (2) (1)), 158D (3) and (5). 159 (4} (a) (i) and (ii), 159A (7) and (12), 159B(3), 159c (4) (a) (i) and (ii), 159D (2) and (6), 1590 (1) and (3), 160 (1) (c) and (d), (3) (h) (i),(4) (c) (i) and (5), 160ABA (1) and (3), 160Ac (1) (paragraph (d) of definition of " exportmarket development expenditure ", paragraphs (a) and (b) of definition of " prescribedagent " and definition of " prescribed outgoings "), 160Ac (3) (a), (b), (c) and (d),(4) (b), (5), (9), (10) (b) and (c), (12), (13) and (15) (b), 160AE (I) (definitions of " theaverage rate of Australian tax " and " the undistributed amount ") and (2) (a), (h) and(c), 160AE (2) (b) and (5), 160AG (1), 160AH (definition of " credit "), 160AL, 160Ao, 170(9A), (I I) and (12), 193 (2), 221 A (1) (definitions of " deduction ", " employee " em-ployer ", " group certificate ", " group employer ", interim stamps receipt " and" tax deduction sheet "), 221c (6), 221E (2), 221E (5) (d), (7), (8) and (12), 221G (2) and(6), 221H (1) and (5), 221L, 221.N (3), 221s (3) and (4), 221YA (1) (definitions of " estimatedtaxable income " and " salary or wages ") and (IA), 221YDA, 221YDB (1A) and (2), 221YDC,221YK (1) (definition of " interest "), 221YR (2), 221YN (1) and (3), 221yp (1) and (2),

221YQ (1), (3) and (4), 221YR (2) and (3), 221YRA (1) and (3), 221YS, 251K (6) and (7),251L (4), 251N (1) and (3), 251o, 262A (1), 265 (9), (10) and (11), 265A (3) and (5) andThe Second Schedule,

No. 51 Income Tax Assessment

1973

ScieouLE--continued

3. The Principal Act is further amended as set Out in the following table:—

Provision Amendment

Section 2 ..

Section 4

Section 6 (1) (definition of" present war ")

Section 6 (4)Section 6 (6)Section 6AA (3)

Section 6a (2) (a)

Section 6c (1)

Section 17..

Section 23 (kab)Section 23 (p)Section 23 (q)

Section 23 (t) (ii) (1)

Section 23 (za)

Section 23AA (1) (definition of" the Joint Defence SpaceCommunications Station ")

Section 23AA (I) (definition of" the Joint Defence SpaceResearch Facility ")

Section 23AA (I) (definition of" the Sparta Project ")

Section 23AA (3) ..Section 23Ac (3) (c)

Section 23Ac (4)

Section 23c (2)Section 23D (1)

Section 23r (2)Section 23v (2) (e)

Section 23r (11)Section 26 (d)

Section 26A (a)

Section 26a (7)Section 265A (6)Section 265A (7)Section 27 (1)

Section 31 A (2)

Section 36 (6)Section 36AAA (13) (a)Section 36AAA (13) (d)Section 36AAA (16) ..Section 36AA (5) ..Section 44 (2) (d)

(a) Omit " the First Schedule to this Act ", substitute " Schedule1 ".

(b) Omit " the first day of July, One thousand nine hundred andthirty-six ", substitute " 1st July, 1936 ".

Omit " the thirty-first day of July, One thousand nine hundredand thirty-one ", substitute " 31st July, 1931".

Omit " the third day of September, One thousand nine hundredand thirty-nine", substitute " 3rd September, 1939 ".

Omit " of this section ".Omit " of this section ".Omit " the eighteenth day of October, One thousand nine hundred

and sixty-eight ", substitute " 18th October, 1968 ".Omit " the nineteenth day of October, One thousand nine hundred

and sixty-seven ", substitute " 19th October, 1967 ".Omit " the first day of July, One thousand nine hundred and

sixty-eight ", substitute " 1st July, 1968 ".Omit " the first day of July, One thousand nine hundred and

sixty-five ", substitute " 1st July 1965 ".Omit " three hundred and eighty ", substitute " 380 ".Omit " of Part 111,".Omit " the nineteenth day of October, One thousand nine hundred

and sixty-seven ", substitute " 19th October, 1967 ".Omit " the first day of July, One thousand nine hundred and

forty-seven ", substitute " 1st July, 1947 ".Omit " the twenty-eighth day of August, One thousand nine

hundred and sixty-four ", substitute " 28th August, 1964 ".Omit " the tenth day of November, One thousand nine hundred

and sixty-nine ", substitute " 10th November, 1969 ".

Omit " the ninth day of December, One thousand nine hundredand sixty-six ", substitute " 9th December, 1966 ''.

Omit " the thirtieth day of March, One thousand nine hundredand sixty-six ", substitute "30th March, 1966 ".

Omit " of this Part ".Omit " the first day of July, One thousand nine hundred and

sixty-five ", substitute " 1st July, 1965 ".Omit " the first day of July, One thousand nine hundred and

sixty-five ", substitute " 1st July, 1965 ".Omit " of this Act ".Omit " the thirtieth day of June, One thousand nine hundred

and sixty-eight ", substitute " 30th June, 1968Omit " of this Act ".Omit " the thirty-first day of March, One thousand nine hundred

and sixty-six ", substitute " 31st March, 1966 ".Omit " of this section " (wherever occurring).Omit " the first day of July, One thousand nine hundred and

forty-seven ", substitute " let July, 1947 ".Omit " the nineteenth day of October, One thousand nine hundred

and sixty-seven ", substitute " 19th October, 1967 ".Omit " of this section " (first occurring).Omit " of this section ".Omit " of this section ".Omit " the thirty-first day of December, One thousand nine

hundred and twenty-three ", substitute " 31st December, 1923 ".Omit " the thirtieth day of June, One thousand nine hundred and

fifty-two ", substitute " 30th June, 1952 ".Omit " of this section " (first occurring).Omit " of this section ".Omit " of this section " (second occurring).Omit " of this section " (first and third occurring).Omit " of this section " (first occurring).Omit " of this Part " and " of this Act ".

Amendment

Omit " of this section ".Omit " the first day of April, One thousand nine hundred and

sixty-five ", substitute " 1st April, 1965 ".Omit " the nineteenth day of October, One thousand nine

hundred and sixty-seven ", substitute " 19th October, 1967 ".Omit " of this Act " (wherever occurring).Omit " the thirty-first day of August, One thousand nine hundred

and seventy-one ", substitute " 31st August, 1971 ".Omit " of this Act " (wherever occurring).Omit " the nineteenth day of October, One thousand nine

hundred and sixty-seven ", substitute " 19th October, 1967 "•Omit " the thirtieth day of June, One thousand nine hundred

and sixty-one " (wherever occurring), substitute " 30th June,1961 ",

Omit " the thirtieth day of June, One thousand nine hundred andsixty " (wherever occurring), substitute " 30th June, 1960 ".

Omit of Part III.".

Omit " of PartOmit " the fifteenth day of November, One thousand nine

hundred and sixty " (wherever occurring), substitute " 15thNovember, 1960 ".

Omit " of this Act ".(a) Omit " the thirtieth day of June, One thousand nine hundred

and sixty-one ", substitute " 30th June, 1961 ".(b) Omit " the first day of July, One thousand nine hundred and

sixty-eight ", substitute " 1st July, 1968 ".(c) Omit of this Act ".Omit " of Part in.".(a) Omit " eighty-two of this Act ", substitute " 82 ".(b) Omit " fifty-one, or sub-section (2) of section seventy-three,

of this Act ", substitute " 51 or sub-section (2) of section 73".Omit " the thirtieth day of June, One thousand nine hundred and

forty-five " (wherever occurring), substitute " 30th June, 1945 ".Omit " the thirtieth day of June, One thousand nine hundred and

forty-five ", substitute " 30th June, 1945 ".Omit " the first day of July, One thousand nine hundred and

sixty-five ", substitute " 1st July, 1965 ".(a) Omit " the thirtieth day of June, One thousand nine hundred

and sixty-three ", substitute " 30th June, 1963 ".(b) Omit " the thirtieth day of June, One thousand nine hundred

and fifty-eight ", substitute " 30th June, 1958 ".(c) Omit " the thirtieth day of June, One thousand nine hundred

and thirty-eight ", substitute " 30th June, 1938 ".Omit " the thirtieth day of June, One thousand nine hundred and

fifty-seven ", substitute " 30th June, 1957 ".(a) Omit " the thirtieth day of June, One thousand nine hundred

and fifty-one " (wherever occurring), substitute " 30th June,1951 ".

(b) Omit " the thirtieth day of June, One thousand nine hundredand fifty-eight '', substitute " 30th June, 1958 ".

(c) Omit " the thirtieth day of June, One thousand nine hundredand sixty-three ", substitute " 30th June, 1963 "-

Omit " of this Act ".Omit " the thirtieth day of June, One thousand nine hundred

and fifty-two (wherever occurring), substitute " 30th June,1952 ".

Omit " of this Act ".(a) Omit " the thirtieth day of June, One thousand nine hundred

and sixty-eight " (wherever occurring), substitute " 30th June,1968 ".

(b) Omit " the thirty-first day of December, One thousand ninehundred and sixty-nine " (wherever occurring), substitute

" 31st December, 1969 ".Omit " of this section" (second occurring).Omit " of this Act ".

1973 Income Tax Assessment No 51

ScHEDuu—continued

Provision

Section 44 (2D)Section 44A (1)

Section 45 (IA)

Section 45 (5)Section 46A (1)

Section 46 (7A)Section 47 (2A)

Section 51AA (1), (2), (4), (5),(6), (9), (10), (11) and (14)

Section 51AA (I) , .

Section 51AA (1) (definition of" interest ")

Section 51AA (9)Section 51AA (5), (6), (10), (11)

and (12)

Section 51AC (2)Section 51Ac (3)

Section 51Ac (9) ..Section 51Ac (10) ..

Section 53A (6)

Section 53A (7)

Section 53r (4)

Section 54 (2)

Section 56A (2) ..

Section 57AA (3) ..

Section 57AA (8)Section 57AB (1)

Section 57AB (7) „Section 58 (2)

Section 58 (3)Section 58 (6)


SCHEDULE—continued

Provision Amendment

Omit " of this section ".Omit " or this Part ".Omit " of this Act " (second occurring),Omit " the seventh day of February, One thousand nine hundred

and sixty-two " (wherever occurring), substitute " 7th February,1962 ".

Omit " of this Act " (first occurring).(a) Omit " the third day of February, One thousand nine hundred

and seventy-one ", substitute " 3rd February, 1971 ".(b) Omit " the fourteenth day of February, One thousand nine•

hundred and seventy-two ", substitute " 14th February,1972 ".

Omit " the fourteenth day of August, One thousand nine hundredand sixty-three ", substitute " 14th August, 1963 ".it " of this Act" (first occurring).

Omit " of this section ", " of this Act " (first occurring) and " ofthis Part ".

Omit " of this section " (first occurring) and " of this Act "'-Omit " of this section ".Omit " of this section " (wherever occurring).Omit " of this Act " (second occurring).

Omit " the thirtieth day of June, One thousand nine hundred andsixty-three ", substitute " 30th June, 1963 ".

Omit " of this Act " (second occurring).Omit " the thirtieth day of June, One thousand nine hundred and

forty-six ", substitute " 30th June, 1946 ".Omit " of this section ".Omit " the first day of July, One thousand nine hundred and

sixty-one ", substitute " 1st July, 1961 ".Omit " the ninth day of May, One thousand nine hundred and

sixty-eight " (wherever occurring), substitute " 9th May, 1968 ".Omit " of this section " and " of this Act ".(a) Omit " the first day of July, One thousand nine hundred and

sixty-nine ", substitute " 1st July, 1969 ".(b) Omit " the twenty-eighth day of August. One thousand nine

hundred and sixty-nine ", substitute 28th August, 1969 "-Omit " of this section ".Omit " of this section " (wherever occurring).Om it " of this Part ".Omit " of this Act " (wherever occurring).(a) Omit " of this paragraph ""-(b) Omit " the twenty-third day of October, One thousand nine

hundred and sixty-three ", substitute " 23rd October, 1963 ".(a) Omit " the fourth day of August, One thousand nine hundred

and fourteen ", substitute " 4th August, 1914 "'-(b) Omit " the third day of September, One thousand nine hundred

and thirty-nine ", substitute " 3rd September, 1939 ",Omit " the ninth day of May, One thousand nine hundred and

sixty-eight ", substitute " 9th May, 1968 ".Omit " the first day of July, One thousand nine hundred and

sixty-three ", substitute " 1st July, 1963 ".Omit " the first day of July, One thousand nine hundred and

sixty-four ", substitute " 1st July, 1964 ".Omit " the thirty-first day of March, One thousand nine hundred

and sixty-six ", substitute " 31st March, 1966 ".Omit " of this section " (wherever occurring).Omit " the Second Schedule to this Act ", substitute

" Schedule 2 ".Omit " the Second Schedule " (wherever occurring), substitute

Schedule 2 ".Omit " of this Act ".Omit " the first day of July, One thousand nine hundred and

fifty-seven ", substitute " 1st July, 1957 ".

Section 59 (2s)Section 59AB (2)Section 60 (1)Section 62AA (7), (8) and (9

Section 62AA (I I)Section 62AA (13)

Section 62AB (4) and (5)

Section 62AB (8)Section 65 (In)

Section 65 (ID)Section 65 (1E)Section 65 (Is) ..Section 70 (1) (definition of

" telephone line ")Section 70 (1) (definition of

" the cost of a telephoneline ")


Section 73A (4) ..Section 7Th (1) (definition of

" moneys paid on shares ")Section 77c (1) (definition of

" calls paid on shares ")Section 77c (4) ..Section 77o (I) (definition of

" moneys paid on shares ")

Section 77o (5) ,Section 77o (13)Section 77o (15)Section 78 (1)Section 78 (1) (a) (iii)

Section 78 (1) (a) (vii)

Section 78 (1) (b)

Section 78 (3)

Section 78 (4)

Section 79 (2) (c)


Section 79s (4)

Section 79n (1)Section 80AA (I) and (1A)

1973 No. 51

Provision

Income Tax Assessment

scHEDuLE—continued

Amendment

(a) Omit " eighty " (first occurring), substitute " 80 ".(b) Omit " eighty AA, of this Act, any deductions ", substitute

" 80AA, any deductions ",(c) Omit " eighty of this Act ", substitute " 80 ".(d) Omit " eighty AA of this Act.", substitute " 80.AA.".Omit of this Act ".Omit " of this Act " (wherever occurring).Omit " of this section ".Omit " the first day of July, One thousand nine hundred and

sixty-five ", substitute " 1st July, 1965 ".Omit " of this Act " (first occurring.)Omit " the first day of July, One thousand nine hundred and

seventy- two ", substitute " 1st July, 1972 ".Omit " of this Act" and " of this sub-section ".Omit " the fifteenth day of November, One thousand nine hundred

and sixty ", substitute " 15th November, 1960 ".Omit " of this Act ".Omit " of this section ".Omit " of this section " (first occurring).Omit the twenty-second day of October, One thousand nine

hundred and sixty-four ", substitute " 22nd October, 1964 ".Omit " of this Act ".Omit " the thirty-first day of December, One thousand nine

hundred and fifty-two ", substitute " 31st December, 1952 ".Omit " the first day of January, One thousand nine hundred and

thirty-seven ", substitute " 1st January, 1937 ".Omit " the ninth day of May, One thousand nine hundred and

sixty-eight ", substitute " 9th May, 1968 ".Omit " of this section " and " of this Act ".Omit " of this Act " and " of this sub-section " (wherever

occurring).Omit " of this Act " (wherever occurring).Omit " the twenty-second day of October, One thousand nine

hundred and sixty-four ", substitute " 22nd October, 1964".Omit " of this section ".Omit " of this Act,".

(a) Omit " of Part III.".(b) Omit from sub-paragraph (i) of paragraph (b) " the first day of

July, One thousand nine hundred and forty-seven ", substitute" 1st July, 1947 ".

Omit " of this section " (first, third, fourth and sixth occurring).Omit " of this section " (first and second occurring).Omit " of this section " (second and third occurring).Omit " of this section " (second and third occurring).Omit " the thirtieth day of June, One thousand nine hundred

and fifty-one ", substitute " 30th June, 1951 ".Omit the thirtieth day of June, One thousand nine hundred and

sixty-three ", substitute " 30th June, 1963 ".Omit " the first day of July, One thousand nine hundred and

forty-seven ", substitute " 1st July, 1947 ".Omit " the thirtieth day of June, One thousand nine hundred and

forty-seven ", substitute " 30th June, 1947 ".Omit " the thirtieth day of June, One thousand nine hundred and

fifty-one ", substitute " 30th June 1951 ",Omit " the thirtieth day of June, One thousand nine hundred

and fifty-two ", substitute " 30th June, 1952 ".Omit " the thirtieth day of June, One thousand nine hundred

and seventy-one " (wherever occurring), substitute " 30thJune, 1971 ",

Omit " the first day of July, One thousand nine hundred andseventy-one ", substitute " 1st July, 1971 ".

Omit " the twenty-ninth day of April, One thousand nine hundredand seventy-one ", substitute " 29th April, 1971 ".

Omit " the thirtieth day of June, One thousand nine hundredand seventy substitute " 30th June, 1970 ".

Section 80AB

Section 80B (5) (c)Section 82 (3)Section 82AAG (13) .Section 82AAH

Section 82AARSection 82JAA (I) and (2)

Section 82JAA (4)Section 1328 (1)

Section 82s (1) (a) and (d) (ii)Section 82s (1) (d) (viii) and (xi)Section 82s (4) ..Section 83AA (1), (2), (3) and (4)

Section 83AA (4) and (5)Section 83A (1) (a) .

Section 88A (4) and (5)

Section 88B (5A), (5B), (5c) and(5D)

Section 88B (5D)Section 94 (4)

Section 94 (II) •Section 102B (1)

Section 102B (5) and (6) ..Section 103 (1) (definition of

" special fund dividends ")Section 103 (1) (definition of

the distributable income ")

Section 103A (4)Section 103A (4B) ..Section 103A (5) ..Section 103A (6) ..Section 105A (2) ..

Section 105AA (6)

Section 105C (1) (a)

Section 105c (I) (b)

Section 106 (I) and (3)

Section 106 (3)

Section 106 (4)

Section 106 (4) (b)

Section 106 (4) (c)

Section 106 (4)

No. 51 Income Tax Assessment I973

SCREOULE—continued

Provision Amendment

Section 107 (1) (a) ..

Section 107 (1) (d)

Section 107 (1) (e)

Section 110 (definition of" exempt superannuationfund ")

Section 1 WA (1) (b) and (2) (a)

Section 110A (2) (c), (e) and (4)

Section 110A (3) and (8)

Section 110A (6)Section 110A (7)Section 110A (10)Section 115 (1)

Section 115 (3)Section 115 (7)Section 116A (1)

Section 116A (2)

Section 121BA (1) ..Section 121c (1), (2), (3) and (10)

Section 121c (2) and (10)

Section 121c (10)

Section 121CASection 121cbSection 121r,Section 121dcSection 121 DE

Section 122 (1) (definition of" prescribed purposes ")

Section 122B (6)

Section 122c

Section 122c (2) ..Section 122c (2) (b)

Section 122.; (5) (a)

Section 122K (4) (definition of" expenditure ")

Section 122a

Omit " the first day of January, One thousand nine hundredand sixty-five ", substitute " 1st January, 1965 ".

Omit " the first day of July, One thousand nine hundred andforty-seven ", substitute " 1St July, 1947 ".

(a) Omit " the thirtieth day of June, One thousand nine hundredand forty-seven ", substitute " 30th June, 1947 ".

(b) Omit " the first day of July, One thousand nine hundred andfifty-one ", substitute " 1st July, 1951 ".

Omit from paragraph (b) " of Part 111.".

Omit " the first day of July, One thousand nine hundred andseventy-two ", substitute " tst July, 1972 ".

Omit " the first day of March, One thousand nine hundred andsixty-one " (wherever occurring), substitute " 1st March,1961 ".

Omit " the first day of July, One thousand nine hundred andseventy-one ", substitute " 1st July, 1971 ".

Omit " of this section " (second occurring).Omit " of this section " (second occurring).Omit " of this section " (second occurring).Omit "the first day of March, One thousand nine hundred and

sixty-one ", substitute " 1st March, 1961 ".Omit " of this Act ".Omit " of this sub-section ".Omit " the thirtieth day of June, One thousand nine hundred

and sixty-one " (wherever occurring), substitute " 30th June,1961 ".

(a) Omit " the first day of March, One thousand nine hundredand sixty-one " (wherever occurring), substitute " 1st March,1961 ".

(b) Omit " the first day of July, One thousand nine hundred andsixty ", substitute " 1st Jul), 1960 ".

(c) Omit " the twenty-eighth day of February, One thousand ninehundred and sixty -one ", substitute " 28th February, 1961 ".

Omit " of this Act ".Omit " the first day of March, One thousand nine hundred and

sixty-one" (wherever occurring), substitute " 1st March,1961 ".

Omit " the first day of July, One thousand nine hundred andsixty ", substitute " let July, 1960 ".

Omit " the twenty-eighth day of February, One thousand ninehundred and sixty-one ", substitute "28th February, 1961 ".

Omit " of this Act " (wherever occurring).Omit " of this Act " (wherever occurring).Omit " of this Act " (wherever occurring).Omit " of this Act " (first occurring).(a) Omit " the first day of March, One thousand nine hundred

and sixty-one ", substitute " 1st March, 1961 ".(b) Omit " the first day of July, One thousand nine hundred and

sixty " (wherever occurring), substitute " 1st July, 1960 ".Omit " the ninth day of May, One thousand nine hundred and.

sixty-eight ", substitute " 9th May, 1968 ".Omit " of this Act " (wherever occurring) and " of this section "

(last occurring).Omit " the thirtieth day of June, One thousand nine hundred and

sixty-seven " (wherever occurring), substitute " 30th June,1967 ".

Omit " of this Act " (wherever occurring).Omit " the first day of July, One thousand nine hundred and

sixty-eight ", substitute " 1st July, 1968 ".Omit " the thirtieth day of June, One thousand nine hundred and

sixty-seven ", substitute " 30th June, 1967 ".Omit " the first day of July, One thousand nine hundred and

fifty-one ", substitute " 1st July, 1951 ".Omit " of this Act " (second, third and fourth occurring).


SCHEDULE--continued

Provision Amendment

Section 1220 (1) (definition of" net declared capital ")

Section 123A (1) • -

Omit from paragraph (a) " the thirtieth day of June, One thousandnine hundred and sixty-seven ", substitute " 30th June, 1967

(a) Omit " the first day of July, One thousand nine hundred andsixty-one ", substitute " 1st July, 1961 ".

(b) Omit " the thirtieth day of June, One thousand nine hundredand sixty-seven " (wherever occurring) substitute " 30th June,1967 ".

(a) Omit " the thirtieth day of June, One thousand nine hundredand sixty-eight ", substitute " 30th June, 1968 ".

(b) Omit " the thirty-first day of December, One thousand ninehundred and sixty-nine ", substitute " 31st December, 1969 ",

Omit "'the thirtieth day of June, One thousand nine hundredand sixty-seven ", substitute " 30th. June, 1967 ".

(a) Omit " the first day of July, One thousand nine hundred andsixty-seven ", substitute " 1st July, 1967 ".

(b) Omit " of this Act " (wherever occurring).Omit " of this Part " and " of this Act " (second and third

occurring).Omit of this section " (second occurring),Omit " the first day of July, One thousand nine hundred and

fifty-six ", substitute " 1st July, 1956 ".Omit " of this section " (second occurring).Omit " the first day of July, One thousand nine hundred an.d

sixty-three ", substitute " 1st July, 1963 ".Omit " the first day of July, One thousand nine hundred and

fifty-six ", subsIitute " 1st July, 1956 ".Omit " of this Act " (first occurring).Omit " the first day of January, One thousand nine hundred and

sixty-eight" (wherever occurring), substitute " 1st January,6

Omit " the first day of January, One thousand nine hundred andsixty-eight ", substitute " 1st January, 1968 ".

Omit " the fifth day of May, One thousand nine hundred andsixty-seven ", substitute " 5th May, 1967 ".

Omit " the thirtieth day of June, One thousand nine hundredand thirty-eight ", substitute 30th June, 1938 ".

Omit " the first day of July, One thousand nine hundred andsixty-six " (wherever occurring), substitute " 1st July, 1966 ".

Omit " the thirtieth day of June, One thousand nine hundredand sixty-six ", substitute " 30th June, 1966 ".

Omit " the thirtieth day of June, One thousand nine hundredand sixty-seven ", substitute " 30th June, 1967 ".

Omit " of this section " (second occurring).Omit " the first day of November, One thousand nine hundred

and sixty-eight ", substitute " 1st November, 1968 ''.Omit " of this Part ".

Omit " of this Act " (wherever occurring).Omit " the thirtieth day of June, One thousand nine hundred

and sixty-eight ", substitute " 30th June, 1968 ".Omit " of this Act " (first occurring).Omit " of this sub-section ".Omit " the nineteenth day of October, One thousand nine hundred

and sixty-seven ", substitute " 19th October, 1967 "-Omit " of this section " (first occurring).(a) Omit " of this Part ".(b) Omit " of this section " (first occurring).Omit " of this Act " (first occurring).(a) Omit " of this Part ".(b) Omit " of this Act " (first occurring).Omit " of this Part'".Omit " of this Act " (second occurring).Omit " of this Act,".Omit " the fourteenth day of February, One thousand nine

hundred and sixty-six " (wherever occurring), substitute" 14th February, 1966 ".

Section 123A (1B)

Section 123B (1)

Section 123c (5)

Section 124DN (2)

Section 124F (3)Section 124F (5)

Section 124m (3)Section 124JA (4)

Section 124s (3)

Section 128A (4)Section 128E

Section 128E (1) (a)

Section 128E (1) (la) (i)

Section 157 (1) •

Section 158AA (I) and (3)

Section 158Ac (1) (a)

Section I 58Ac (1) (d)

Section 159A (11) ..Section 160AB (2) .

Section 160Ac (1) (definition of" tax payable " or " tax ")

Section 160Ac (2) ..Section I60Ac (3) ..

Section 160Ac (10) (a) (ii)Section 160Ac (15) ..Section 160AE (3) • .

Section 160AE (2)Section 160AE (4) ..

Section 1160A1 (1) (b)Section 160AN (1A) ..

Section 160AN (4)Section 165 (IA)Section 170 (10A)Section 170n


SCR!' rj Continued

Provision Amendment

Omit " the first day of July, One thousand nine hundred andsixty-six ", substitute " 1st July, 1966 ".

Omit — of this Act " (first occurring),Omit " the thirtieth day of June, One thousand nine hundred

and sixty-six ", substitute " 30th June, 1966 ".Omit " of this Act ".Omit " of this section ".Omit " the thirtieth day of June, One thousand nine hundred

and forty-seven ", substitute " 30th June, 1947Omit " of this Act ".Omit the thirteenth day of September, One thousand nine

hundred and fifteen ", substitute " 13th September, 1915Omit " THE FIRST SCHEDULE.", substitute

" SCHEDULE I".Omit " THE SECOND SCHEDULE.", substitute

" SCHEDULE 2".

Section 170c

Section 221YA (2) ..Section 221YR (2) ..

Section 221 YVSection 2511 (121 ..Section 251.1A

Section 2510Section 261 (1) (a)

The First Schedule ..

The Second Schedule

Documents

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