Commonwealth: Taxation Laws Amendment Act (No. 3) 1993 (Cth)

Taxation Laws Amendment Act (No. 3) 1993 Act No. 118 of 1993 as amended This compilation was prepared on 28 September 2010 taking into account amendments up to Act No. 75 of 2010 The text of any of those amendments not in force on that date is appended in the Notes section The operation of amendments that have been incorporated may be affected by application provisions that are set out in the Notes section Prepared by the Office of Legislative Drafting and Publishing, Attorney-General's Department, Canberra TABLE OF PROVISIONS PART 1 - PRELIMINARY Section 1. Short title [see Note 1] 2. Commencement [see Note 1] PART 2 - AMENDMENT OF THE CRIMES (TAXATION OFFENCES) ACT 1980 3. Principal Act 4. Object of Part 5. Interpretation 6. Application of amendments PART 3 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986 Division 1 - Principal Act 7. Principal Act Division 2 - Amendments relating to airline transport fringe benefits 8. Object of Division 9. Interpretation 10. Application of amendments Division 3 - Amendment relating to sources of information available for the compilation of FBT returns 11. Object of Division 12. Certificate of sources of information PART 4 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936 Division 1 - Principal Act 13. Principal Act Division 2 - Amendments relating to petroleum activities 14. Object of Division 15. Interpretation 16. Allowable capital expenditure in respect of cash bidding payments for exploration permits and production licences 17. Exploration and prospecting expenditure 18. Application of amendments Division 3 - Amendments relating to deductions allowable to life assurance companies 19. Object of Division 20. Reduction in deductions that do not exclusively relate to producing assessable income 21. Expenses of general management 22. Apportionment of current year deductions between classes 23. Application of amendments Division 4 - Amendment relating to life assurance policies and capital gains 24. Object of Division 25. Policies of life assurance 26. Application of amendment Division 5 - Amendments relating to the prescribed payment system (PPS) 27. Object of Division 28. Deductions where payee declaration 29. Deductions where no payee declaration 30. Application of amendments Division 6 - Amendments relating to provisional tax 31. Object of Division 32. Interpretation 33. Application of amendments Division 7 - Technical correction of the gifts deduction provisions 34. Object of Division 35. Deduction for gifts, pensions etc. Division 8 - Amendment relating to the payment of superannuation guarantee shortfalls to approved deposit funds 36. Object of Division 37. Taxable contributions 38. Application of amendment Division 9 - Amendments relating to dividend imputation Subdivision A - Object of Division 39. Object of Division Subdivision B - Amendments of the Principal Act 40. Interpretation 41. Ascertainment of surplus or deficit 42. Carry forward of franking surplus 43. Initial payment of tax 44. Subsequent payments of tax before determination of taxable income 45. Final payment of tax 46. Payments of tax made after the final payment of tax 47. Receipt of franked dividends 48. Receipt of franked dividends through trusts and partnerships 49. Payment of excess offset 50. Payment of excess foreign tax credit 51. Lapsing of estimated debit 52. Substituted estimated debit determination 53. Life assurance companies - credit reducing section 160APYBA debit 54. Life assurance companies - credit reducing section 160APYBB debit 55. Life assurance companies - credit reducing section 160APYB debit 56. Life assurance companies - credit reducing section 160APZ debit 57. Life assurance companies - credit reducing subsection 160AQCD(1) debit 58. Life assurance companies - credit reducing subsection 160AQCE(1) debit 59. Insertion of new section: 160APVH. Life assurance companies - statutory fund component 60. Under-franking 61. Excessive reduction in section 160APX debit 62. Refunds in respect of initial payment of tax by a company 63. Refunds of company tax 64. Foreign tax credits - actual payment or application against non-franking credit liabilities 65. Waiver of franking deficit tax 66. Amended company tax assessment reducing tax 67. Payment of franked dividends 68. Estimated debit determination 69. Transfer of asset to insurance funds 70. Dividend streaming arrangements 71. On-market share buy-back arrangements 72. Life assurance companies - debit reducing section 160APMA credit 73. Life assurance companies - debit reducing section 160APMB credit 74. Life assurance companies - debit reducing section 160APMC credit 75. Life assurance companies - debit reducing section 160APMD credit 76. Life assurance companies - debit reducing section 160APQB credit 77. Life assurance companies - debit reducing subsection 160APVC(1) credit 78. Insertion of new section: 160AQCN. Life assurance companies - statutory fund component 79. Determination of estimated class A debit 80. Insertion of new section: 160AQDA. Determination of estimated class B debit 81. Insertion of new section: 160AQDB. How to work out the class A required franking amount and the class B required franking amount 82. How to work out the required franking amount 83. What constitutes franking 84. Company to give dividend statement to shareholders 85. Liability to franking deficit tax 86. Entitlement to offset 87. Extra amount to be included in assessable income where franked dividend paid 88. Franking rebate for certain beneficiaries 89. Franking rebate in trustee's assessment 90. Franking rebate for trustees of superannuation funds, ADFs and PSTs 91. Franking rebate for certain partners 92. Franking rebates for certain life assurance companies 93. Adjustment where franking credit arises 94. Adjustment for non-resident beneficiary 95. Adjustment where trustee assessed for non-resident beneficiary 96. Adjustment where trustee assessed for company 97. Adjustment for non-resident partner 98. First return deemed to be an assessment 99. Part-year assessment 100. Default assessment 101. Amendment of assessments 102. Interpretation 103. Penalty for over-franking 104. Penalty for failure to lodge return 105. Penalty tax because of position taken 106. Company to keep records 107. Duties of payers Subdivision C - Application and transitional provisions 108. Interpretation 109. Application of amendments 110. Transitional - carry forward of franking surplus from 1993-94 111. Transitional - receipt of class A franked dividends or class B franked dividends etc. by a corporate shareholder before the start of the shareholder's 1994-95 franking year 112. Transitional - estimated debit determinations etc. 113. Transitional - reversing entries in class A franking account etc. Division 10 - Amendments relating to tax concessions for grape growing 114. Object of division 115. Insertion of new section: 75AA. Deduction for capital expenditure incurred in establishing grape vines PART 5 - AMENDMENT OF THE INCOME TAX (INTERNATIONAL AGREEMENTS) ACT 1953 117. Principal Act 118. Object of Part 119. Schedule 38 120. Application of amendments PART 6 - AMENDMENT OF THE OCCUPATIONAL SUPERANNUATION STANDARDS ACT 1987 121. Principal Act 122. Object of Part 123. Interpretation 124. Application of amendments PART 7 - AMENDMENT OF THE PETROLEUM RESOURCE RENT TAX ASSESSMENT ACT 1987 125. Principal Act 126. Object of Part 127. Transfer of expenditure - general 128. Transfer of expenditure - group companies 129. Insertion of new section: 48A. Transfer on or after 1 July 1993 of part of entitlement to assessable receipts 130. Annual returns 131. Defined terms 132. Rule - person must have held interests in relation to transferring entity and receiving project 133. Rule - loss company and profit company to have held interests and been group companies PART 8 - AMENDMENT OF THE SALES TAX ASSESSMENT ACT 1992 134. Principal Act 135. General definitions 136. Insertion of new section: 15C. Eligible repair goods 137. Amending Acts cannot impose penalties etc. earlier than 28 days after Royal Assent 138. Schedule 1 139. Application PART 9 - AMENDMENT OF THE SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT 1992 140. Object of Part 141. Principal Act 142. Interpretation 143. Insertion of new section: 3B. Meaning of "exempt child care body" 144. Schedule 1 145. Application 146. Transitional PART 10 - AMENDMENT OF THE SUPERANNUATION GUARANTEE (ADMINISTRATION) ACT 1992 Division 1 - Preliminary 147. Principal Act 148. Object of Part Division 2 - The OSS system 149. Interpretation: general 150. Insertion of new section: 7A. Interpretation: complying approved deposit fund 151. Payment of shortfall component 152. Application of amendments Division 3 - The SIS system 153. Interpretation: general 154. Payment of shortfall component 155. Application of amendments PART 11 - AMENDMENT OF THE SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 156. Principal Act 157. Object of Part 158. Interpretation 159. Application of amendments PART 12 - AMENDMENT OF THE TAXATION (INTEREST ON OVERPAYMENTS) ACT 1983 Division 1 - Principal Act 160. Principal Act Division 2 - Amendments relating to the prescribed payment system 161. Object of Division 162. Interpretation 163. Application of amendments Division 3 - Amendment relating to penalties for late payment of estimates of amounts payable under Divisions 2, 3A, 3B and 4 of Part VI of the Income Tax Assessment Act 1936 164. Object of Division 165. Interpretation 166. Application of amendment PART 13 - DEFERRAL OF INITIAL PAYMENTS OF COMPANY TAX FOR 1993-94 Division 1 - Interpretation 167. Interpretation Division 2 - Deferral of initial payments of tax for 1993-94 168. 9-week deferral of initial payments of tax for 1993-94 Division 3 - Deferred initial payments of tax for 1993-94 to be offset by prior payments of franking deficit tax 169. Deferred initial payments of tax for 1993-94 to be offset by prior payments of franking deficit tax 170. IP offset provision to be ignored in calculating certain company tax thresholds 171. Eliminated or reduced initial payments of tax to be treated as fully paid for credit/refund purposes 172. Franking credits and debits - effect of elimination or reduction of initial payment of tax 173. Reduction of liability for franking deficit tax 174. No refunds of amounts of franking deficit tax overpaid because of the FDT reduction provision 175. Reduction of liability for franking deficit tax does not give rise to a franking credit under section 160APQA of the Assessment Act PART 14 - AMENDMENTS RELATED TO TOURISM INDUSTRY ORGANISATIONS Division 1 - Object of Part 176. Object of Part Division 2 - Amendment of the Income Tax Assessment Act 1936 177. Principal Act 178. Exemptions 179. Application of amendment Division 3 - Amendment of the Fringe Benefits Tax Assessment Act 1986 180. Principal Act 181. Rebate for certain non-profit employers etc. 182. Application of amendment TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - LONG TITLE An Act to amend the law relating to taxation PART 1 - PRELIMINARY TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 1 Short title [see Note 1] 1. This Act may be cited as the Taxation Laws Amendment Act (No. 3) 1993. TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 2 Commencement [see Note 1] 2.(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent. (2) Sections 125, 132 and 133 are taken to have commenced on 1 July 1991. (3) Sections 129 and 131 are taken to have commenced on 1 July 1993. (4) Division 3 of Part 10 and Part 11 commence on whichever is the later of the following days: (a) the date of commencement of Part 3 of the Superannuation Industry (Supervision) Act 1993; (b) the day after the date of commencement of this section. (5) Division 3 of Part 14 commences immediately after the commencement of the Taxation Laws Amendment (Fringe Benefits Tax Measures) Act 1992. PART 2 - AMENDMENT OF THE CRIMES (TAXATION OFFENCES) ACT 1980 TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 3 Principal Act 3. In this Part, "Principal Act" means the Crimes (Taxation Offences) Act 1980.*1* Crimes (Taxation Offences) Act 1980 *1* No. 156, 1980, as amended. For previous amendments, see No. 123, 1984; No. 47, 1985; Nos. 41, 48, 76 and 154, 1986; Nos. 58, 61, 140 and 145, 1987; No. 97, 1988; Nos 20, 58 and 60, 1990; Nos 92 and 118, 1992; and Nos 18 and 32, 1993. TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 4 Object of Part 4. The object of this Part is to update cross-references in the Principal Act to certain prescribed payment system provisions of the income tax law. TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 5 Interpretation 5. Section 3 of the Principal Act is amended by omitting "221YHD(1) or (1D)" from paragraph (g) of the definition of "income tax" in subsection (1) and substituting "221YHDC(2)". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 6 Application of amendments 6. The amendments made by this Part apply in relation to prescribed payments made after the commencement of this section. PART 3 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986 Division 1 - Principal Act TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 7 Principal Act 7. In this Part, "Principal Act" means the Fringe Benefits Tax Assessment Act 1986.*2* Fringe Benefits Tax Assessment Act 1986 *2* No. 39, 1986, as amended. For previous amendments, see Nos. 48 and 112, 1986; Nos. 23 and 145, 1987; No. 139, 1987 (as amended by Nos. 11 and 78, 1988); Nos. 6, 78, 95, 97 and 153, 1988; Nos. 2, 11, 97 and 107, 1989; Nos. 37, 58, 60 and 135, 1990; Nos. 48, 100 and 216, 1991; Nos. 35, 92, 101, 118, 191, 210, 223 and 237, 1992; and Nos. 17 and 18, 1993. Division 2 - Amendments relating to airline transport fringe benefits TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 8 Object of Division 8. The object of this Division is to change the method of working out the taxable value of a domestic airline transport fringe benefit. TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 9 Interpretation 9. Section 136 of the Principal Act is amended by omitting paragraph (a) of the definition of "stand-by value" in subsection (1) and substituting the following paragraph: "(a) if the recipients transport is over a domestic route: (i) if the recipients transport is on a scheduled passenger air service-37.5% of the lowest publicly advertised economy air fare charged by the provider at or about the comparison time in respect of transport over that route; and (ii) if: (A) the recipients transport is not on a scheduled passenger air service; and (B) a carrier operates a scheduled passenger air service over that route at or about the comparison time; 37.5% of the lowest publicly advertised economy air fare charged by a carrier at or about the comparison time in respect of transport over that route; and (iii) if: (A) the recipients transport is not on a scheduled passenger air service; and (B) no carrier operates a scheduled passenger air service over that route at or about the comparison time; and (C) a combination of scheduled passenger air services operated by a carrier or carriers at or about the comparison time would enable a person to travel between the ports of embarkation and disembarkation; 37.5% of the lowest combination of publicly advertised economy air fares charged by carriers at or about the comparison time in respect of transport between the ports of embarkation and disembarkation; and (iv) in any other case-75% of the notional value at the comparison time of the recipients transport; and". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 10 Application of amendments 10. The amendments made by this Division apply in relation to an airline transport fringe benefit that began to be provided after the commencement of this section. Division 3 - Amendment relating to sources of information available for the compilation of FBT returns TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 11 Object of Division 11. The object of this Division is to remove a redundant provision requiring a statement about the sources available for the compilation of an FBT return. TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 12 Certificate of sources of information 12. Section 71 of the Principal Act is amended by omitting subsection (3). PART 4 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936 Division 1 - Principal Act TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 13 Principal Act 13. In this Part, "Principal Act" means the Income Tax Assessment Act 1936.*3* Income Tax Assessment Act 1936 *3* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; 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; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 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, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49, 51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984; No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and 174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51, 109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52, 1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141, 1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988); Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70, 73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105, 1989); Nos. 20, 35, 45, 57, 58, 60, 61, 87, 119 and 135, 1990; Nos. 4, 5, 6, 48, 55, 100, 203, 208 and 216, 1991; and Nos. 3, 35, 69, 70, 80, 81, 92, 98, 101, 118, 138, 167, 190, 191, 208, 223, 224, 227, 237 and 238, 1992; and Nos. 7, 17, 18, 27 and 32, 1993. Division 2 - Amendments relating to petroleum activities TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 14 Object of Division 14. The object of this Division is to deny deductions for certain capital expenditure relating to petroleum activities if the activities are not related to producing assessable income. TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 15 Interpretation 15. Section 124 of the Principal Act is amended by adding ", being operations carried on for the purpose of gaining or producing assessable income" at the end of the definition of "prescribed petroleum operations" in subsection (1). TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 16 Allowable capital expenditure in respect of cash bidding payments for exploration permits and production licences 16. Section 124ABA of the Principal Act is amended: (a) by inserting ", if the amount is incurred in carrying on prescribed petroleum operations or for the purpose of exploring or prospecting for petroleum obtainable by prescribed petroleum operations" after "grant of a production licence" in paragraph (a) of the definition of "licence cash bidding payment" in subsection (6); (b) by inserting ", if the amount is incurred in carrying on prescribed petroleum operations or for the purpose of exploring or prospecting for petroleum obtainable by prescribed petroleum operations" after "grant of an exploration permit" in paragraph (a) of the definition of "permit cash bidding payment" in subsection (6). TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 17 Exploration and prospecting expenditure 17. Section 124AH of the Principal Act is amended by omitting from subsection (1) and subparagraph (4C)(b)(i) "the purpose of discovering petroleum" and substituting "petroleum obtainable by prescribed petroleum operations". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 18 Application of amendments 18. The amendments made by this Division apply in relation to expenditure incurred after 7.30 p.m., by standard time in the Australian Capital Territory, on 21 August 1990. Division 3 - Amendments relating to deductions allowable to life assurance companies TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 19 Object of Division 19. The object of this Division is to modify certain provisions relating to deductions allowable to life assurance companies. TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 20 Reduction in deductions that do not exclusively relate to producing assessable income 20. Section 111C of the Principal Act is amended by adding at the end the following subsection: "(3) Paragraph 275(2)(a) (which relates to the transfer of taxable superannuation contributions to life assurance companies) is to be disregarded for the purposes of subsection (2) of this section.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 21 Expenses of general management 21. Section 113 of the Principal Act is amended by inserting after subsection (2) the following subsection: "(2A) Paragraph 275(2)(a) (which relates to the transfer of taxable superannuation contributions to life assurance companies) is to be disregarded for the purposes of subsections (1) and (2) of this section.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 22 Apportionment of current year deductions between classes 22. Section 116CF of the Principal Act is amended by adding at the end the following subsections: "(3) Paragraph 275(2)(a) (which relates to the transfer of taxable superannuation contributions to life assurance companies) is to be disregarded for the purposes of subsection (2) of this section. "(4) For the purposes of the definition of 'Total income' in subsection (2), the following are taken to be assessable income: (a) superannuation premiums to which subsection 111A(1) applies; (b) the investment component of premiums to which section 111AA applies. "(5) For the purposes of the application of subsection (2) to the NCS class of assessable income, the definition of 'Income of class' has effect as if superannuation premiums to which subsection 111A(1) applies, being premiums in respect of NCS policies, were assessable income of that class. "(6) For the purposes of the application of subsection (2) to the CS/RA class of assessable income, the definition of 'Income of class' has effect as if the following were assessable income of that class: (a) superannuation premiums to which subsection 111A(1) applies, being premiums in respect of CS policies; (b) the investment component of premiums to which section 111AA applies, being premiums in respect of RA policies. "(7) For the purposes of the application of subsection (2) to the AD/RLA class of assessable income, the definition of 'Income of class' has effect as if the investment component of premiums to which section 111AA applies, being premiums in respect of AD/RLA policies, were assessable income of that class.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 23 Application of amendments 23.(1) In this section: "amended Act" means the Principal Act as amended by this Division. (2) Subsections 111C(3), 113(2A) and 116CF(3) of the amended Act apply in relation to an agreement entered into by a life assurance company under section 275 of the Income Tax Assessment Act 1936 after 31 May 1993. (3) Subsections 116CF(4), (5), (6) and (7) of the amended Act apply in relation to premiums received by a life assurance company after 31 May 1993. Division 4 - Amendment relating to life assurance policies and capital gains TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 24 Object of Division 24. The object of this Division is to exempt disposals of life assurance policies held by trustees of complying superannuation funds, complying approved deposit funds and pooled superannuation trusts from Part IIIA of the Principal Act (which deals with capital gains and capital losses). TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 25 Policies of life assurance 25. Section 160ZZI of the Principal Act is amended by inserting after subsection (3) the following subsection: "(3A) This Part does not apply in respect of the disposal by a taxpayer of, or of an interest in, any rights under a policy of life assurance if: (a) the taxpayer is the trustee of a complying superannuation fund, within the meaning of Part IX, in relation to the year of income of the taxpayer in which the disposal occurred; or (b) the taxpayer is the trustee of a complying ADF, within the meaning of Part IX, in relation to the year of income of the taxpayer in which the disposal occurred; or (c) the taxpayer is the trustee of a PST, within the meaning of Part IX, in relation to the year of income of the taxpayer in which the disposal occurred.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 26 Application of amendment 26. The amendment made by this Division applies to a disposal during the year of income in which 1 July 1988 occurred or during a later year of income. Division 5 - Amendments relating to the prescribed payment system (PPS) TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 27 Object of Division 27. The object of this Division is to provide that deductions from prescribed payments are to be in whole dollars. TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 28 Deductions where payee declaration 28. Section 221YHD of the Principal Act is amended by adding at the end of subsections (2), (3) and (5) "If working out that percentage of the payment results in an amount of dollars and cents, the cents are to be disregarded.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 29 Deductions where no payee declaration 29. Section 221YHDA of the Principal Act is amended by adding at the end of subsection (2) "If working out that percentage of the payment results in an amount of dollars and cents, the cents are to be disregarded.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 30 Application of amendments 30. The amendments made by this Division apply in relation to prescribed payments made on or after 1 January 1993. Division 6 - Amendments relating to provisional tax TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 31 Object of Division 31. The object of this Division is to reduce the provisional tax uplift factor for 1993-94 from 10% to 8%. TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 32 Interpretation 32. Section 221YA of the Principal Act is amended by omitting from subsection (1) the definition of "provisional tax uplift factor" and substituting the following definition: " 'provisional tax uplift factor': (a) in relation to the 1993-94 year of income-means 8%; and (b) in relation to a later year of income-means, until the Parliament otherwise provides, 10%;". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 33 Application of amendments 33. The amendments made by this Division apply in relation to provisional tax (including instalments) payable for the 1993-94 year of income and for all later years of income. Division 7 - Technical correction of the gifts deduction provisions TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 34 Object of Division 34. The object of this Division is to re-instate the condition that tax-deductible gifts to the Shrine of Remembrance Restoration and Development Trust must be made before 1 July 1995. TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 35 Deduction for gifts, pensions etc. 35. Section 78 of the Principal Act is amended by inserting "the gift must be made before 1 July 1995" in the "Special conditions" column opposite item 5.2.1 in Table 5 in subsection (4). Division 8 - Amendment relating to the payment of superannuation guarantee shortfalls to approved deposit funds TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 36 Object of Division 36. The object of this Division is to provide that the taxable contributions of an approved deposit fund include any payments of the shortfall component of an amount of superannuation guarantee charge. TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 37 Taxable contributions 37. Section 274 of the Principal Act is amended by adding at the end of subsection (1) the following paragraph: "(d) if the eligible entity is a complying ADF-a contribution under section 65 of the Superannuation Guarantee (Administration) Act 1992.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 38 Application of amendment 38. The amendment made by this Division applies to a contribution made after the commencement of this section. Division 9 - Amendments relating to dividend imputation Subdivision A - Object of Division TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 39 Object of Division 39. The object of this Division is to make changes to the dividend imputation system that are consequential on the reduction of the rate of tax payable by companies from 39% to 33%. Subdivision B - Amendments of the Principal Act TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 40 Interpretation 40. Section 160APA of the Principal Act is amended: (a) by omitting paragraph (b) of the definition of "applicable general company tax rate" and substituting the following paragraphs: "(b) in relation to the liability of a company to pay class A franking deficit tax for a franking year-39%; (ba) in relation to the liability of a company to pay class B franking deficit tax for a franking year-33%; (bb) in relation to the calculation of the adjusted amount in relation to an amount mentioned in paragraph 160APYC(a), (b) or (c)-the applicable general company tax rate in relation to the initial payment of tax concerned; (bc) in relation to the calculation of the adjusted amount in relation to the amount of a payment mentioned in section 160APQA, being a payment that relates to an offset of company tax, or increased company tax, for a year of income-the general company tax rate for the year of tax to which the year of income relates;"; (b) by omitting paragraph (c) of the definition of "applicable general company tax rate" and substituting the following paragraphs: "(c) in relation to: (i) the payment of a class A franked dividend to a shareholder in a company; or (ii) a trust amount or partnership amount that relates, directly or indirectly, to the payment of a class A franked dividend to a shareholder in a company; 39%; or (ca) in relation to: (i) the payment of a class B franked dividend to a shareholder in a company; or (ii) a trust amount or partnership amount that relates, directly or indirectly, to the payment of a class B franked dividend to a shareholder in a company; 33%;"; (c) by omitting the definitions of "franking account balance", "franking deficit" and "franking surplus"; (d) by omitting the definitions of "estimated debit", "estimated debit determination", "franking account assessment", "franking deficit tax" and "franking percentage" and substituting the following definitions: " 'estimated debit' means an estimated class A debit or an estimated class B debit; 'estimated debit determination' means an estimated class A debit determination or an estimated class B debit determination; 'franking account assessment' means a class A franking account assessment or a class B franking account assessment; 'franking deficit tax' means class A franking deficit tax or class B franking deficit tax; 'franking percentage' means: (a) in relation to a franked dividend-the sum of: (i) the class A franking percentage of the dividend; and (ii) the class B franking percentage of the dividend; or (b) in relation to an unfranked dividend-0%;"; (e) by inserting the following definitions: " 'class A flow-on franking amount' means an amount that would be a flow-on franking amount if: (a) a reference in the definition of 'flow-on franking amount' to a franked dividend were, by express provision, confined to a class A franked dividend; and (b) a reference in that definition to the flow-on franking amount were, by express provision, confined to a class A flow-on franking amount; 'class A franked amount', in relation to a dividend, means so much of the dividend as has been franked in accordance with subsection 160AQF(1); 'class A franked dividend' means a dividend the whole or a part of which has been franked in accordance with subsection 160AQF(1); 'class A franking account assessment' means the ascertainment of the class A franking account balance and of any class A franking deficit tax payable; 'class A franking account balance', in relation to a company, means: (a) if the company has a class A franking surplus-the amount of that surplus; or (b) if the company has a class A franking deficit-the amount of that deficit; or (c) in any other case-nil; 'class A franking deficit' means a deficit calculated under subsection 160APJ(2); 'class A franking deficit tax' means tax payable in accordance with subsection 160AQJ(1); 'class A franking percentage' means: (a) in relation to a class A franked dividend-the percentage specified in the declaration made under subsection 160AQF(1) in relation to the dividend; or (b) in relation to a dividend (including a dividend that is not a frankable dividend) no part of which has been franked in accordance with subsection 160AQF(1)-0%; 'class A franking surplus' means a surplus calculated under subsection 160APJ(1); 'class A potential rebate amount' means an amount that would be a potential rebate amount if: (a) each reference in the definition of 'potential rebate amount' to a franked dividend were, by express provision, confined to a class A franked dividend; and (b) each reference in that definition to a flow-on franking amount were, by express provision, confined to a class A flow-on franking amount; and (c) each reference in that definition to a potential rebate amount were, by express provision, confined to a class A potential rebate amount; 'class B flow-on franking amount' means an amount that would be a flow-on franking amount if: (a) a reference in the definition of 'flow-on franking amount' to a franked dividend were, by express provision, confined to a class B franked dividend; and (b) a reference in that definition to the flow-on franking amount were, by express provision, confined to a class B flow-on franking amount; 'class B franked amount', in relation to a dividend, means so much of the dividend as has been franked in accordance with subsection 160AQF(1AA); 'class B franked dividend' means a dividend the whole or a part of which has been franked in accordance with subsection 160AQF(1AA); 'class B franking account assessment' means the ascertainment of the class B franking account balance and of any class B franking deficit tax payable; 'class B franking account balance', in relation to a company, means: (a) if the company has a class B franking surplus-the amount of that surplus; or (b) if the company has a class B franking deficit-the amount of that deficit; or (c) in any other case-nil; 'class B franking deficit' means a deficit calculated under subsection 160APJ(3); 'class B franking deficit tax' means tax payable in accordance with subsection 160AQJ(1A); 'class B franking percentage' means: (a) in relation to a class B franked dividend-the percentage specified in the declaration made under subsection 160AQF(1AA) in relation to the dividend; or (b) in relation to a dividend (including a dividend that is not a frankable dividend) no part of which has been franked in accordance with subsection 160AQF(1AA)-0%; 'class B franking surplus' means a surplus calculated under subsection 160APJ(1A); 'class B potential rebate amount' means an amount that would be a potential rebate amount if: (a) each reference in the definition of 'potential rebate amount' to a franked dividend were, by express provision, confined to a class B franked dividend; and (b) each reference in that definition to a flow-on franking amount were, by express provision, confined to a class B flow-on franking amount; and (c) each reference in that definition to a potential rebate amount were, by express provision, confined to a class B potential rebate amount; 'estimated class A debit' means an estimated class A debit specified in an estimated class A debit determination; 'estimated class B debit' means an estimated class B debit specified in an estimated class B debit determination; 'estimated class A debit determination' means a determination made by the Commissioner under subsection 160AQD(1); 'estimated class B debit determination' means a determination made by the Commissioner under subsection 160AQDA(1); 'special life company tax rate' means the rate of tax specified in paragraph 23(4A)(b) of the Income Tax Rates Act 1986;"; (f) by inserting the following definitions: " 'franking credit' means a class A franking credit or a class B franking credit; 'franking debit' means a class A franking debit or a class B franking debit;". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 41 Ascertainment of surplus or deficit 41. Section 160APJ of the Principal Act is amended: (a) by inserting in subsection (1) "class A" before "franking" (first, 3rd and 5th occurring); (b) by inserting after subsection (1) the following subsection: "(1A) The class B franking surplus of a company at a particular time in a franking year is the amount by which the total of the class B franking credits of the company arising in the franking year and before that time exceeds the total of the class B franking debits of the company arising in the franking year and before that time."; (c) by inserting in subsection (2) "class A" before "franking" (first, 3rd and 5th occurring); (d) by adding at the end the following subsection: "(3) The class B franking deficit of a company at a particular time in a franking year is the amount by which the total of the class B franking debits of the company arising in the franking year and before that time exceeds the total of the class B franking credits of the company arising in the franking year and before that time.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 42 Carry forward of franking surplus 42. Section 160APL of the Principal Act is amended: (a) by inserting "class A" before "franking" (first, 4th and 5th occurring); (b) by adding at the end the following subsection: "(2) If a company has a class B franking surplus at the end of a franking year, there arises at the beginning of the next franking year a class B franking credit of the company equal to that class B franking surplus.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 43 Initial payment of tax 43. Section 160APMA of the Principal Act is amended by omitting paragraphs (a) and (b) and substituting the following paragraphs: "(a) if the payment day is in the year of income-there arises on the first day of the franking year next following the payment year whichever of the following is applicable: (i) if the year of income is the 1992-93 year of income or an earlier year of income-a class A franking credit of the company equal to the adjusted amount in relation to the amount paid; (ii) if the year of income is the 1993-94 year of income or a later year of income-a class B franking credit of the company equal to the adjusted amount in relation to the amount paid; or (b) in any other case-there arises on the payment day whichever of the following is applicable: (i) if the year of income is the 1992-93 year of income or an earlier year of income-a class A franking credit of the company equal to the adjusted amount in relation to the amount paid; (ii) if the year of income is the 1993-94 year of income or a later year of income-a class B franking credit of the company equal to the adjusted amount in relation to the amount paid.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 44 Subsequent payments of tax before determination of taxable income 44. Section 160APMB of the Principal Act is amended by omitting all the words after "on which that further payment is made," and substituting the following words and paragraphs: "whichever of the following is applicable: (a) if the year of income is the 1992-93 year of income or an earlier year of income-a class A franking credit of the company equal to the adjusted amount in relation to the amount of that further payment; (b) if the year of income is the 1993-94 year of income or a later year of income-a class B franking credit of the company equal to the adjusted amount in relation to the amount of that further payment.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 45 Final payment of tax 45. Section 160APMC of the Principal Act is amended by omitting all the words after "on that day" and substituting the following words and paragraphs: "whichever of the following is applicable: (a) if the year of income is the 1992-93 year of income or an earlier year of income-a class A franking credit of the company equal to the adjusted amount in relation to the amount of that payment; (b) if the year of income is the 1993-94 year of income or a later year of income-a class B franking credit of the company equal to the adjusted amount in relation to the amount of that payment.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 46 Payments of tax made after the final payment of tax 46. Section 160APMD of the Principal Act is amended by omitting all the words after "that payment is made," and substituting the following words and paragraphs: "whichever of the following is applicable: (c) if the year of income is the 1992-93 year of income or an earlier year of income-a class A franking credit of the company equal to the adjusted amount in relation to the amount of that payment; (d) if the year of income is the 1993-94 year of income or a later year of income-a class B franking credit of the company equal to the adjusted amount in relation to the amount of that payment.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 47 Receipt of franked dividends 47. Section 160APP of the Principal Act is amended: (a) by inserting in paragraph (1)(a) "class A" before "franked"; (b) by inserting in subsection (1) "class A" before "franking credit"; (c) by inserting in subsection (1) "class A" before "franked amount"; (d) by inserting after subsection (1) the following subsection: "(1A) Subject to this section, if: (a) on a particular day, a class B franked dividend is paid to a shareholder being a company; and (b) the company is a resident at the time the dividend is paid; there arises on that day a class B franking credit of the company equal to the class B franked amount of the dividend."; (e) by inserting in subsection (3) "arising under subsection (1) or (1A)" after "franking credit" (first occurring); (f) by omitting "subsection (1)" from the definition of the component "FC" in subsection (3) and substituting "whichever of subsections (1) and (1A) is applicable"; (g) by inserting in subsection (5) "arising under subsection (1) or (1A)" after "franking credit". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 48 Receipt of franked dividends through trusts and partnerships 48. Section 160APQ of the Principal Act is amended: (a) by inserting in paragraph (1)(b) "class A" before "flow-on franking amount"; (b) by inserting in subsection (1) "class A" before "franking credit"; (c) by inserting "class A" before "potential rebate amount" in the definition of the component "PR" in subsection (1); (d) by inserting after subsection (1) the following subsection: "(1A) Subject to this section, if: (a) a trust amount or partnership amount is included in, or a partnership amount is allowed as a deduction from, the assessable income of a company; and (b) there is a class B flow-on franking amount in relation to the trust amount or the partnership amount; there arises, at the end of the year of income of the trustee or partnership to which the trust amount or partnership amount relates, a class B franking credit of the company equal to the amount worked out using the formula: Potential rebate amount X 1 - Company tax rate Company tax rate where: 'Potential rebate amount' means the class B potential rebate amount in relation to the trust amount or partnership amount; 'Company tax rate' means the applicable general company tax rate."; (e) by inserting in subsection (3) "arising under subsection (1) or (1A)" after "franking credit" (first occurring). TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 49 Payment of excess offset 49. Section 160APQA of the Principal Act is amended by omitting all the words after "on that day" and substituting the following words and paragraphs: "whichever of the following is applicable: (c) if the offset relates to company tax for the 1992-93 year of income or an earlier year of income-a class A franking credit of the company equal to the adjusted amount in relation to the amount of the payment; (d) if the offset relates to company tax for the 1993-94 year of income or a later year of income-a class B franking credit of the company equal to the adjusted amount in relation to the amount of the payment.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 50 Payment of excess foreign tax credit 50. Section 160APQB of the Principal Act is amended by omitting all the words after "on that day" and substituting the following words and paragraphs: "whichever of the following is applicable: (c) if the year of income is the 1992-93 year of income or an earlier year of income-a class A franking credit of the company equal to the adjusted amount in relation to the amount of that payment; (d) if the year of income is the 1993-94 year of income or a later year of income-a class B franking credit of the company equal to the adjusted amount in relation to the amount of that payment.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 51 Lapsing of estimated debit 51. Section 160APU of the Principal Act is amended: (a) by inserting "class A" after "estimated" (wherever occurring); (b) by inserting "class A" before "franking"; (c) by adding at the end the following subsection: "(2) On the day on which the termination time in relation to an estimated class B debit of a company occurs, there arises a class B franking credit of the company equal to the estimated class B debit.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 52 Substituted estimated debit determination 52. Section 160APV of the Principal Act is amended: (a) by inserting "class A" after "estimated"; (b) by inserting "class A" before "franking" (wherever occurring); (c) by adding at the end the following subsection: "(2) If, on a particular day, the Commissioner serves on a company a notice of an estimated class B debit determination that is in substitution for an earlier determination, there arises on that day a class B franking credit of the company equal to the amount of the class B franking debit that arose because of the earlier determination.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 53 Life assurance companies-credit reducing section 160APYBA debit 53. Section 160APVBA of the Principal Act is amended: (a) by omitting from subsection (1) all the words after "on that day" and substituting the following words and paragraphs: "whichever of the following is applicable: (a) if the year of income is the 1992-93 year of income or an earlier year of income-a class A franking credit of the company worked out under subsection (2) of this section; (b) if the year of income is the 1993-94 year of income or a later year of income-a class B franking credit of the company worked out under subsection (2) of this section."; (b) by omitting from subsection (2) "0.8" and substituting "Statutory factor"; (c) by inserting the following definition in subsection (2) (before the existing definitions): " 'Statutory factor' means: (a) in the case of a class A franking credit-0.8; or (b) in the case of a class B franking credit-1.0;". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 54 Life assurance companies-credit reducing section 160APYBB debit 54. Section 160APVBB of the Principal Act is amended: (a) by omitting from subsection (1) all the words after "on that day" and substituting the following words and paragraphs: "whichever of the following is applicable: (a) if the year of income is the 1992-93 year of income or an earlier year of income-a class A franking credit of the company worked out under subsection (2) of this section; (b) if the year of income is the 1993-94 year of income or a later year of income-a class B franking credit of the company worked out under subsection (2) of this section."; (b) by omitting from subsection (2) "0.8" and substituting "Statutory factor"; (c) by inserting the following definition in subsection (2) (before the existing definitions): " 'Statutory factor' means: (a) in the case of a class A franking credit-0.8; or (b) in the case of a class B franking credit-1.0;". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 55 Life assurance companies-credit reducing section 160APYB debit 55. Section 160APVC of the Principal Act is amended: (a) by omitting from subsection (1) all the words after "on that day" and substituting the following words and paragraphs: "whichever of the following is applicable: (a) if the year of income is the 1992-93 year of income or an earlier year of income-a class A franking credit of the company worked out under subsection (2) of this section; (b) if the year of income is the 1993-94 year of income or a later year of income-a class B franking credit of the company worked out under subsection (2) of this section."; (b) by omitting from subsection (2) "0.8" and substituting "Statutory factor"; (c) by inserting the following definition in subsection (2) (before the existing definitions): " 'Statutory factor' means: (a) in the case of a class A franking credit-0.8; or (b) in the case of a class B franking credit-1.0;"; (d) by omitting from subsection (3) all the words after "served," (third occurring) and substituting the following words and paragraphs: "whichever of the following is applicable: (c) if the year of income is the 1992-93 year of income or an earlier year of income-a class A franking credit of the company worked out under subsection (4) of this section; (d) if the year of income is the 1993-94 year of income or a later year of income-a class B franking credit of the company worked out under subsection (4) of this section."; (e) by omitting from subsection (4) "0.8" and substituting "Statutory factor"; (f) by inserting the following definition in subsection (4) (before the existing definitions): " 'Statutory factor' means: (a) in the case of a class A franking credit-0.8; or (b) in the case of a class B franking credit-1.0;". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 56 Life assurance companies-credit reducing section 160APZ debit 56. Section 160APVD of the Principal Act is amended: (a) by inserting "class A" before "franking" (wherever occurring); (b) by adding at the end the following subsection: "(2) If, on a particular day, a class B franking debit of a life assurance company arises under section 160APZ in relation to a reduction in the company tax of the company for a year of income, there arises on that day a class B franking credit of the company equal to the adjusted amount in relation to the amount worked out using the formula: Statutory X Overall reduction - Non-fund component factor of reduction where: 'Statutory factor' means 1.0; 'Overall reduction' means the amount of the reduction; 'Non-fund component of reduction' means so much of the amount of the reduction as is attributable to the non-fund component.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 57 Life assurance companies-credit reducing subsection 160AQCD(1) debit 57. Section 160APVF of the Principal Act is amended: (a) by inserting "class A" before "franking" (wherever occurring); (b) by adding at the end the following subsection: "(2) If: (a) on a particular day, a class B franking debit of a life assurance company arises under subsection 160AQCD(1) in relation to an initial payment of tax in respect of a year of income; and (b) on or after that day, a notice of an original company tax assessment for the year of income is served, or deemed to be served, on the company; there arises, on the day on which the notice is served or deemed to be served, a class B franking credit of the company equal to the amount of the class B franking debit.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 58 Life assurance companies-credit reducing subsection 160AQCE(1) debit 58. Section 160APVG of the Principal Act is amended: (a) by inserting "class A" before "franking" (wherever occurring); (b) by adding at the end the following subsection: "(2) If: (a) on a particular day, a class B franking debit of a life assurance company arises under subsection 160AQCE(1) in relation to a further payment on account of tax in respect of a year of income; and (b) on or after that day, a notice of an original company tax assessment for the year of income is served, or deemed to be served, on the company; there arises, on the day on which the notice is served or deemed to be served, a class B franking credit of the company equal to the amount of the class B franking debit.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 59 Insertion of new section 59. After section 160APVG of the Principal Act the following section is inserted in Subdivision B of Division 2 of Part IIIAA: Life assurance companies-statutory fund component "160APVH.(1) If, on a particular day, a class B franking debit of a life assurance company arises under any of the following provisions: (a) subsection 160AQCD(1); (b) subsection 160AQCD(3); (c) subsection 160AQCE(1); (d) subsection 160AQCE(3); (e) section 160AQCJ; (f) section 160AQCK; (g) section 160AQCL; there arises on that day a class A franking credit of the company equal to the amount that would have been the amount of that class B franking debit if the assumptions set out in subsection (2) were made. "(2) The assumptions are as follows: (a) the assumption that the class B franking debit had been calculated using a statutory factor of 0.2 instead of 1.0; (b) the assumption that the class B franking debit had been calculated by reference to the special life company tax rate for the year of tax concerned instead of by reference to the general company tax rate for the year of tax concerned. "(3) If: (a) on a particular day, a class A franking debit of a company arises under subsection 160AQCN(1) because of paragraph (c) of that subsection in relation to an amount received as a refund in relation to a year of income; and (b) on or after that day, a notice of an original company tax assessment for the year of income is served, or deemed to be served, on the company; there arises, on the day on which the notice is served or deemed to be served, a class A franking credit of the company equal to the amount of the class A franking debit.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 60 Under-franking 60. Section 160APX of the Principal Act is amended: (a) by inserting in paragraphs (1)(a) and (b) "class A" before "required franking amount"; (b) by inserting in paragraph (1)(b) "class A" before "franked amount"; (c) by inserting in subsection (1) "class A" before "franking debit"; (d) by inserting after subsection (1) the following subsection: "(1A) If: (a) the class B required franking amount for a frankable dividend paid by a company on a particular day is not less than 10% of the amount of the dividend; and (b) that class B required franking amount exceeds the class B franked amount of the dividend; there arises on that day a class B franking debit of the company equal to the excess referred in to paragraph (b).". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 61 Excessive reduction in section 160APX debit 61. Section 160APXA of the Principal Act is amended: (a) by inserting in paragraph (1)(a) "class A" before "franking debit"; (b) by inserting in subsection (1) "class A" before "franking debit is to arise"; (c) by inserting in subsection (2) "class A" before "franking debit". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 62 Refunds in respect of initial payment of tax by a company 62. Section 160APYB of the Principal Act is amended by omitting all the words after "receives the amount," and substituting the following words and paragraphs: "whichever of the following is applicable: (a) if the refund is in respect of the 1992-93 year of income or an earlier year of income-a class A franking debit of the company equal to the adjusted amount in relation to the amount received; (b) if the refund is in respect of the 1993-94 year of income or a later year of income-a class B franking debit of the company equal to the adjusted amount in relation to the amount received.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 63 Refunds of company tax 63. Section 160APYBA of the Principal Act is amended by omitting all the words after "as the case may be," (last occurring) and substituting the following words and paragraphs: "whichever of the following is applicable: (d) if the payment mentioned in paragraph (a) is in respect of the 1992-93 year of income or an earlier year of income-a class A franking debit of the company equal to the adjusted amount in relation to the amount received or applied, as the case requires; (e) if the payment mentioned in paragraph (a) is in respect of the 1993-94 year of income or a later year of income-a class B franking debit of the company equal to the adjusted amount in relation to the amount received or applied, as the case requires.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 64 Foreign tax credits-actual payment or application against non-franking credit liabilities 64. Section 160APYBB of the Principal Act is amended by omitting all the words after "as the case may be," and substituting the following words and paragraphs: "whichever of the following is applicable: (c) if the foreign tax credit was allowable in respect of tax paid or payable by the company in respect of income derived in the 1992-93 year of income or an earlier year of income-a class A franking debit of the company equal to the adjusted amount in relation to the amount paid or applied, as the case requires; (d) if the foreign tax credit was allowable in respect of tax paid or payable by the company in respect of income derived in the 1993-94 year of income or a later year of income-a class B franking debit of the company equal to the adjusted amount in relation to the amount paid or applied, as the case requires.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 65 Waiver of franking deficit tax 65. Section 160APYC of the Principal Act is amended: (a) by inserting "in respect of the 1993-94 year of income or a later year of income" after "221AP made by a company"; (b) by inserting "class B" before "franking debit"; (c) by omitting from paragraph (c) "(0.8 X Fund component)" and substituting "Fund component". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 66 Amended company tax assessment reducing tax 66. Section 160APZ of the Principal Act is amended by omitting all the words after "on that day" and substituting the following words and paragraphs: "whichever of the following is applicable: (c) if the year of income is the 1992-93 year of income or an earlier year of income-a class A franking debit of the company equal to the adjusted amount in relation to the amount of the reduction; (d) if the year of income is the 1993-94 year of income or a later year of income-a class B franking debit of the company equal to the adjusted amount in relation to the amount of the reduction.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 67 Payment of franked dividends 67. Section 160AQB of the Principal Act is amended: (a) by inserting "class A" before "franked" (wherever occurring); (b) by inserting "class A" before "franking"; (c) by adding at the end the following subsection: "(2) If, on a particular day, a company pays a class B franked dividend, there arises on that day a class B franking debit of the company equal to the class B franked amount of the dividend.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 68 Estimated debit determination 68. Section 160AQC of the Principal Act is amended: (a) by inserting "class A" after "estimated" (wherever occurring); (b) by inserting "class A" before "franking debit"; (c) by adding at the end the following subsection: "(2) If, on a particular day, the Commissioner serves on a company notice of an estimated class B debit determination, there arises on that day a class B franking debit of the company equal to the estimated class B debit specified in the notice.". TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 69 Transfer of asset to insurance funds 69. Section 160AQCA of the Principal Act is amended: (a) by inserting "class A" before "franking" (wherever occurring); (b) by inserting in subparagraphs (b)(i) and (ii) "subsection (1) of" before "that section"; (c) by adding at the end the following subsection: "(2) If: (a) a class B franking credit of a life assurance company arose under section 160APP or 160APQ at a particular time during a year of income of the company; and (b) after that time and during the year of income: (i) if section 160APP applied-the asset of the company from which the dividend referred to in subsection (1A) of that section was derived; or (ii) if section 160APQ applied-the asset of the company to which the trust amount or partnership amount referred to in subsection (1A) of that section is attributable; becomes part of the insurance funds of the company; there arises, on the day on which the asset becomes part of the insurance funds, a class B franking debit of the company equal to the class B franking credit.". TAXAT