TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985
TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - TABLE OF PROVISIONS
TABLE OF PROVISIONS PART I - PRELIMINARY Section 1. Short title 2. Commencement PART II - AMENDMENTS OF THE AUSTRALIAN CAPITAL TERRITORY TAXATION (ADMINISTRATION) ACT 1969 3. Principal Act 4. Interpretation 5. Insertion of new section - 50B. Refund of duty where land transferred by way of mortgage is re-transferred 6. Heading to Division 11 of Part III 7. Transfer of marketable securities not to be registered unless duly stamped 8. Insertion of new Division - Division 12 - Loan Securities 58H. Interpretation 58J. Persons liable to pay duty 58K. When loan securities are to be duly stamped 58L. How duty denoted 58M. Duty where amount secured is increased, is not a definite sum, & c. 58N. Loan securities for repayment by periodical payments, & c. 58P. Collateral securities 58Q. Subsequent mortgages 58R. Duty on subscriptions under instruments which secure debentures 58S. Debentures not liable to duty if mortgage duly stamped 58T. Credits in respect of non-Territory stamp duty paid on loan securities 58U. Stamping and lodgment of duplicate instruments, & c. 9. Application PART III - AMENDMENT OF THE AUSTRALIAN CAPITAL TERRITORY TAX (HIRE-PURCHASE BUSINESS) ACT 1969 10. Principal Act 11. Addition of new section - 7. Regulations PART IV - AMENDMENT OF THE AUSTRALIAN CAPITAL TERRITORY TAX (INSURANCE BUSINESS) ACT 1969 12. Principal Act 13. Addition of new section - 7. Regulations PART V - AMENDMENT OF THE AUSTRALIAN CAPITAL TERRITORY TAX (PURCHASES OF MARKETABLE SECURITIES) ACT 1969 14. Principal Act 15. Addition of new section - 7. Regulations PART VI - AMENDMENT OF THE AUSTRALIAN CAPITAL TERRITORY TAX (SALES OF MARKETABLE SECURITIES) ACT 1969 16. Principal Act 17. Addition of new section - 7. Regulations PART VII - AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936 18. Principal Act 19. Interpretation 20. Officers to observe secrecy 21. Exemptions 22. Exemption of certain film income 23. Repeal of section 32 and substitution of new section - 32. Value of live stock at end of year of income 24. Full-year deductions and partnership deductions 25. Divisible deductions 26. Calls paid by certain holding companies 27. Moneys paid on shares for the purposes of certain exploration, prospecting or mining 28. Gifts, pensions, & c. 29. Transfer of loss within company group 30. Interpretation 31. Deduction of allowable (post 19 July 1982) capital expenditure 32. Exploration and prospecting expenditure 33. Elections 34. Insertion of new section - 124ADH. Election in relation to limit on certain deductions 35. Exploration and prospecting expenditure 36. Deductions for capital expenditure under pre 13 January 1983 contracts and certain other contracts 37. Deductions for capital expenditure under post 12 January 1983 contracts 38. Rebate for moneys paid on shares for the purposes of petroleum exploration, prospecting or mining 39. Interpretation 40. Interpretation
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41. Deductions from certain withdrawals from film accounts 42. Application of amendments 43. Amendment of assessments PART VIII - AMENDMENTS OF THE INCOME TAX (INTERNATIONAL AGREEMENTS) ACT 1953 44. Principal Act 45. Interpretation 46. Insertion of new section - 11P. Agreement with Finland 47. Provisions relating to certain income derived from sources in certain countries 48. Schedule PART IX - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953 49. Principal Act 50. Provision of taxation information to National Crime Authority SCHEDULE TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - LONG TITLE
An Act to amend the law relating to taxation (Assented to 16 December 1985) TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - PART I PART I - PRELIMINARY
TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - SECT 1 Short title
1. This Act may be cited as the Taxation Laws Amendment Act (No. 3) 1985. (Minister's second reading speech made in - House of Representatives on 17 October 1985; Senate on 3 December 1985) TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - SECT 2 Commencement
2. (1) Subject to this section, this Act shall come into operation on the day on which it receives the Royal Assent. (2) Part II shall come into operation on the first day of the month next following the month in which this Act receives the Royal Assent. (3) Parts IV, V and VI shall be deemed to have come into operation on 1 July 1969. TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - PART II PART II - AMENDMENTS OF THE AUSTRALIAN CAPITAL TERRITORY TAXATION (ADMINISTRATION) ACT 1969
TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - SECT 3 Principal Act
3. The Australian Capital Territory Taxation (Administration) Act 1969*1* is in this Part referred to as the Principal Act. *1*No. 42, 1969, as amended. For previous amendments, see No. 216, 1973; Nos. 61, 92 and 127, 1981; No. 127, 1982; No. 39, 1983; and No. 123, 1984. TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - SECT 4 Interpretation
4. Section 4 of the Principal Act is amended - (a) by inserting after the definition of "Board of Review" in sub-section (1) the following definition: "'borrower' means - (a) in relation to - (i) a loan security; or (ii) an instrument of the kind referred to in subsection 58M (1), the borrower or the person bound; (b) in relation to an instrument lodged under sub-section 58R (2) by a body corporate - the body corporate; or (c) in relation to an instrument of trust referred to in paragraph (g) of the definition of 'mortgage' in section 58H - the person who issued the corporate debentures to which the instrument relates;"; (b) by inserting after the definition of "conveyance" in sub-section (1) the following definition: "'corporate debenture' means a debenture of a body corporate and includes debenture stock, a bond, a note and any other security of a body corporate, whether it constitutes a charge on assets of the body corporate or not;"; (c) by inserting after the definition of "life insurance" in sub-section (1) the following definition: "'loan security' means - (a) a mortgage within the meaning of Division 12 of Part III; (b) a corporate debenture; or (c) a bond, or a covenant, for securing a loan made or to be made, but does not include an instrument included in a prescribed class of instruments;"; (d) by omitting from sub-section (1) the definition of "marketable security" and substituting the following definition:
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"'marketable security' means - (a) a share in the capital of, or a debenture of, a company; or (b) a unit in relation to a unit trust scheme, and includes a right, whether existing or future and whether contingent or not, of a person to have issued to the person such a share, debenture or unit, whether on payment of money or other consideration or not;"; (e) by inserting after the definition of "purchase price" in sub-section (1) the following definition: "'Real Property Ordinance' means the Real Property Ordinance 1925 of the Australian Capital Territory;"; (f) by inserting after the definition of "trustee" in sub-section (1) the following definitions: "'unit', in relation to a unit trust scheme, means a right or interest (whether described as a unit or sub-unit or otherwise) of a beneficiary under the scheme; 'unit trust' means a trust to which a unit trust scheme relates; 'unit trust scheme' means any arrangements made for the purpose, or having the effect, of providing, for a person having funds available for investment, facilities for the participation by the person, as a beneficiary under a trust, in any profits or income arising from the acquisition, holding, management or disposal of any property pursuant to the trust;"; and (g) by adding at the end the following sub-sections: "(9) For the purposes of this Act - (a) where a bill of exchange or promissory note is dated, the bill or note shall, unless the contrary is shown, be deemed to have been drawn or made on that date; and (b) an instrument shall be deemed to have been executed on the date on which the last party to the instrument appears to have executed it. "(10) The reference in paragraph (c) of the definition of 'loan security' in sub-section (1) to a loan includes a reference to - (a) an advance of money; (b) money paid for or on account of or on behalf of or at the request of a person; (c) a forbearance to require payment of money owing on any account; and (d) a transaction (whatever its terms or form) which is substance effects a loan of money. "(11) For the purpose of this Act, a loan security shall be taken to be connected with the Territory if, and only if - (a) in a case where the loan security subjects property to a security - the whole or a part of that property is situated in the Territory; or (b) in any case - the loan security is executed in the Territory by the borrower. "(12) For the purposes of this Act, a loan security that is not executed shall be deemed to be executed when and where it is issued. "(13) In this Act, a reference to the amount secured by a loan security is, in relation to a mortgage within the meaning of Division 12 of Part III, being an instrument of trust referred to in paragraph (g) of the definition of 'mortgage' in section 58H, a reference to the amount repayable in respect of the corporate debentures to which the instrument relates.". TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - SECT 5
5. After section 50A of the Principal Act the following section is inserted in Division 7 of Part III: Refund of duty where land transferred by way of mortgage is re-transferred "50B. (1) Subject to sub-section (2), where - (a) duty has been paid on a transfer, or an agreement for a transfer, by which an estate or interest in land is or is to be transmitted under the Real Property Ordinance by way of mortgage; (b) in the case of an agreement for a transfer - the estate or interest has been transferred pursuant to the agreement; (c) the estate or interest has been - (i) re-transferred to the mortgage; or (ii) transferred to a person (in this section referred to as the 'mortgagor's successor') to whom the equity of redemption has been transmitted consequent on the death, bankruptcy or insolvency of the mortgagor; and (d) the mortgagor or the mortgagor's successor, as the case may be, becomes the registered proprietor, within the meaning of the Real Property Ordinance, of the estate or interest, the Commissioner shall refund to the person by whom the duty was paid an amount equal to the difference between the amount of duty so paid and the amount of duty that would have been payable on that transfer, or agreement for a transfer, if it had been a loan security. "(2) A person is not entitled to a refund under sub-section (1) unless the person gives to the Commissioner, within 12 months after the mortgagor or the mortgagor's successor becomes the registered proprietor as mentioned in paragraph (1) (d), an application in accordance with an approved form,
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together with such information as the Commissioner requires to enable the Commissioner to determine the amount of the refund. "(3) Nothing in this section shall be taken as derogating from the operation of sub-section 51 (1) of the Real Property Ordinance.". TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - SECT 6 Heading to Division 11 of Part III
6. The heading to Division 11 of Part III of the Principal Act is amended by adding at the end "and Unit Trusts". TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - SECT 7 Transfer of marketable securities not to be registered unless duly stamped
7. Section 58G of the Principal Act is amended by omitting "A transfer of a share in the capital of, or a debenture of, a company shall not be registered, recorded or entered in the books of the company" and substituting "A transfer of a marketable security shall not be registered, recorded or entered in the books of the company or unit trust to which the marketable security relates". TAXATION LAWS AMENDMENT ACT (No. 3) 1985
No. 168, 1985 - SECT 8
8. After Division 11 of Part III of the Principal Act the following Division is inserted: "Division 12 - Loan Securities Interpretation "58H. In this Division - 'duly stamped' means duly stamped in relation to duty payable by virtue of this Division; 'duty' means duty payable by virtue of this Division; 'mortgage' means a security by way of mortgage or charge - (a) for the payment of a definite and certain sum of money advanced or lent at the time or previuosly due or owing, or forborne to be paid, being payable; or (b) for the repayment of money to be thereafter lent, advanced, or paid, or which may become due upon an account current together with a sum already advanced or due, or without, as the case may be, and, without limiting the generality of the foregoing, includes - (c) a security by way of mortgage or charge given in consideration of the conveyance or transfer of an estate or interest in any real or personal property; (d) a transfer or conveyance of any estate or interest in any real or personal property in trust to be sold or otherwise converted into money - (i) intended only as a security; and (ii) redeemable before the sale or other disposal of the estate or interest, either by express stipulation or otherwise, except where the transfer or conveyance is made for the benefit of creditors generally, or for the benefit of creditors specified, who accept the provision made for payment of their debts in full satisfaction of those debts; (e) any defeasance, declaration, or other instrument for defeating or making redeemable or explaining or qualifying a conveyance, transfer, assignment or disposition of any estate or interest in real or personal property, apparently absolute but intended only as a security; (f) any agreement, contract or covenant (being an agreement, contract or covenant relating to documents of title or accompanied with the deposit of any documents of title or instruments creating a charge on real or personal property) for making a mortgage or any such other security, transfer or conveyance of any estate or interest in real or personal property comprised in those documents, or for pledging or charging that property as a security; and (g) any instrument of mortgage (including an instrument of mortgage referred to in paragraph (c), (d), (e) or (f))for the purpose of securing the repayment of corporate debentures or any instrument of trust protecting the interests of the holders of corporate debentures, but does not include a conveyance by which an estate or interest in land is or is to be transmitted under the Real Property Ordinance by way of mortgage. Persons liable to pay duty "58J. Duty imposed on - (a) a loan security; or (b) an instrument of the kind referred to in sub-section 58M (1) or 58R (2), is payable by the borrower. When loan securities are to be duly stamped "58K. Except as otherwise provided by this Division, where a loan security on which duty is imposed is executed, the borrower shall - (a) in a case where the amount payable or repayable under or secured by the loan security exceeds $15,000 or, if that amount is not fixed, where the maximum amount that is or may become payable or repayable under or that is secured by the loan security exceeds $15,000 - lodge the instrument of loan security with the Commissioner for assessment within 30 days after the instrument is executed; or (b) in any other case - cause the instrument of loan security to be duly stamped forthwith on the execution of the loan security. How duty denoted "58L. (1) The payment of duty imposed on an instrument required to be lodged with the Commissioner pursuant to this Division shall be denoted by impressed
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stamp. "(2) The payment of duty imposed on an instrument of loan security to which sub-section (1) does not apply shall be denoted by adhesive stamp. Duty where amount secured is increased, is not a definite sum, &c. "58M. (1) Where - (a) the total amount secured or to be ultimately recoverable by or under a loan security connected with the Territory is expressed in the loan security to be limited to a definite and certain sum of money (whether or not that total amount may be increased pursuant to the loan security); (b) that total amount is increased pursuant to an instrument (whether or not the loan security); and (c) in a case where that total amount is increased pursuant to an instrument other than the loan security - the loan security was executed on or after the date of commencement of this section, that instrument - (d) is liable to duty (if any) equal to the difference between - (i) the duty that would be payable if the instrument were a loan security connected with the Territory executed by the borrower in respect of the sum of the amounts payable or repayable under or secured by the first-mentioned loan security and the amount of that increase and any previous increases; and (ii) the sum of - (A) the duty paid on the first-mentioned loan security; and