House of Representatives
Taxation Laws Amendment Bill (No. 5) 2003
Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Index
Schedule 1: Thin Capitalisation: amendments taking effect on 1 July 2001
| Bill reference | Paragraph number |
|---|---|
| Item 1 | 1.136 |
| Item 2, note 1 in section 820-39 | 1.18 |
| Item 2, note 2 in section 820-39 | 1.15 |
| Item 2, subsections 820-39(1) to (3) | 1.7 |
| Item 2, subsection 820-39(4) | 1.12 |
| Item 2, subsection 820-39(5) | 1.13 |
| Item 3, subsections 820-552(1) and (2) | 1.16 |
| Item 3, subsection 820-552(3) | 1.16 |
| Item 4, section 820-584 | 1.17 |
| Item 5, note in subsection 820-942(2) | 1.15 |
| Item 6, subsection 820-430(1) | 1.27, 1.28 |
| Item 6, subsection 820-430(2) | 1.31 |
| Item 6, subsections 820-430(3) | 1.28 |
| Item 6, subsection 820-430(4) | 1.29 |
| Item 6, subsection 820-430(5) | 1.35 |
| Item 6, subsections 820-430(6) and (7) | 1.33 |
| Item 6, subsection 820-435(1) | 1.23 |
| Item 6, subsections 820-435(2) and (3) | 1.24 |
| Item 6, subsections 820-435(4) and (5) | 1.25 |
| Item 6, section 820-440 | 1.34 |
| Item 6, subsection 820-445(1) | 1.37 |
| Item 6, subsection 820-445(2) | 1.38 |
| Item 6, subsection 820-445(3) | 1.40 |
| Item 6, subsection 820-445(4) | 1.41 |
| Items 7 to 11 | 1.36 |
| Item 12, definition of 'precious metal' in subsection 995-1(1) | 1.25 |
| Item 13, note in subsection 820-680(2) | 1.53 |
| Item 14, subsection 820-680(2A) | 1.47 |
| Item 14, paragraphs 820-680(2B)(a) and 820-680(2B)(c) | 1.48 |
| Item 14, paragraph 820-680(2B)(b) | 1.49 |
| Item 14, subsection 820-680(2C) | 1.50 |
| Item 14, subsection 820-680(2D) | 1.51 |
| Item 14, subsection 820-680(2E) | 1.52 |
| Item 15, subsection 820-985(1) | 1.53 |
| Item 15, subsection 820-985(2) | 1.54 |
| Item 15, subsection 820-985(3) | 1.55 |
| Item 15, subsection 820-985(4) | 1.56 |
| Items 16 and 17 | 1.142 |
| Item 18, subsection 820-85(3) | 1.60 |
| Item 19, subsection 820-120(2) | 1.60 |
| Item 20, subsection 820-185(3) | 1.60 |
| Item 21, subsection 820-225(2) | 1.60 |
| Item 22, subsection 820-942(1) | 1.62 |
| Item 23, subsection 820-942(1) | 1.63 |
| Item 24, subsection 820-942(1) | 1.63 |
| Item 25, subsection 820-942(1) | 1.63 |
| Item 26, definition of 'borrowed securities amount' in subsection 995-1(1) | 1.59 |
| Item 27, definition of 'non-debt liabilities' in subsection 995-1(1) | 1.60 |
| Item 28, definition of 'on-lent amount' in subsection 995-1(1) | 1.61 |
| Item 29, definition of 'financial entity' in subsection 995-1(1) | 1.65, 1.66 |
| Item 30, paragraphs 820-946(1)(c) and 820-946(1)(da) | 1.71 |
| Item 31, subsection 820-946(4) | 1.69, 1.94 |
| Item 32, paragraph 820-910(2)(b) | 1.73 |
| Item 32, paragraph 820-910(2)(c) | 1.19, 1.74 |
| Item 32, paragraph 820-910(2A)(b) | 1.76 |
| Item 32, subsections 820-910(2) and (2A) | 1.75 |
| Item 33, paragraph 820-40(1)(c) | 1.78 |
| Item 34, paragraph 820-795(2)(a) | 1.80 |
| Item 35, paragraph 820-105(2)(d) | 1.141 |
| Item 36, paragraphs 820-105(2)(f) and 820-105(2)(g) | 1.82 |
| Item 37, paragraph 820-215(2)(d) | 1.141 |
| Item 38, paragraphs 820-215(2)(f) and 820-215(2)(g) | 1.82 |
Schedule 2: Thin Capitalisation: amendments taking effect on 1 July 2002
| Bill reference | Paragraph number |
|---|---|
| Item 1 | 1.137 |
| Item 2, subsection 820-960(1) | 1.86 |
| Item 2, subsections 820-960(1A), (1B), (1C), (1D) and (2) | 1.87 |
| Item 2, subsections 820-960(4) and (5) | 1.88 |
| Item 2, subsection 820-960(6) | 1.86 |
| Item 3 | 1.142 |
| Items 4 | 1.143 |
| Item 5, section 820-95 | 1.93 |
| Items 6 to 8 | 1.143 |
| Item 7, subsection 820-100(2) | 1.93 |
| Item 9, subsection 100(3) | 1.93 |
| Items 10 and 12 | 1.143 |
| Item 11, section 820-195 | 1.93 |
| Item 13, subsection 820-200(2) | 1.93 |
| Items 14 and 16 | 1.143 |
| Item 15, subsection 820-200(3) | 1.93 |
| Item 17, section 205 | 1.93 |
| Items 18 and 20 | 1.143 |
| Item 19, subsection 210(2) | 1.93 |
| Item 21, subsection 820-210(3) | 1.93 |
| Items 22 to 32 | 1.143 |
| Item 33, definition of 'excluded equity interest' in subsection 995-1(1) | 1.92 |
| Item 34, definition of 'on issue' in subsection 995-1(1) | 1.95 |
| Item 35, subsection 820-562(3) | 1.109 |
| Items 36 and 37, subsection 820-589(3) | 1.106 |
| Items 37 and 38 | 1.140 |
| Item 39, subsection 820-589(4) | 1.108 |
| Item 40, paragraphs 820-613(3)(a) and 820-613(3)(b) | 1.107 |
| Item 41, section 110-54 | 1.98 |
| Items 42 to 48 | 1.99 |
| Item 49 | 1.100, 1.138 |
| Item 50 | 1.144 |
| Item 51 | 1.138 |
| Item 52, subsection 820-920(3) | 1.101 |
| Item 53, subsection 820-920(4) | 1.102 |
Schedule 3: Thin Capitalisation: amendments taking effect on 1 July 2003
| Bill reference | Paragraph number |
|---|---|
| Items 1 to 5 and 7 | 1.145 |
| Item 6, subsection 820-589 | 1.114 |
| Item 8, subsections 820-613(2) and (3) | 1.117 |
| Item 9, subsection 820-615(2) | 1.129 |
| Items 8 and 9, subsections 820-613(2) and (3) and 820-615(2) | 1.125 |
| Item 10, definition of 'ADI equity capital' in subsection 995-1(1) | 1.125 |
| Items 11 and 12, definitions of 'equity capital' and 'equity interest in an entity' in subsection 995-1(1) | 1.121 |
| Item 13 | 1.146 |
| Item 14, definition of 'worldwide equity' in subsection 995-1(1) | 1.124 |
| Items 15 and 18 | 1.139 |
| Item 16, subsection 820-680(1) | 1.131 |
| Item 17, subsection 820-680(1A) | 1.132 |
Schedule 4: Foreign dividend accounts
| Bill reference | Paragraph number |
|---|---|
| Item 1, paragraph 128TB(1)(b) | 1.135 |
| Item 2 | 1.137 |
Schedule 5: FBT exemption for public hospitals
| Bill reference | Paragraph number |
|---|---|
| Items 1, 2, 4 and 5 | 2.12, 2.13 |
| Items 2, 4 and 5 | 2.14 |
| Items 6 and 7 | 2.16, 2.17, 2.18 |
| Item 8 | 2.19 |
Schedule 6: Reducing tax on excessive ETPs
| Bill reference | Paragraph number |
|---|---|
| Items 1 to 4 | 3.10 |
| Items 5 to 8 | 3.11, 3.12, 3.13 |
| Items 9 and 10 | 3.26 |
| Items 11 and 16 | 3.25 |
| Items 12 to 15 | 3.27 |
| Items 17 to 20 | 3.28 |
| Item 21 | 3.30 |
| Item 22 | 3.29 |
| Item 23 | 3.31 |
Schedule 7: Application of same business test
| Bill reference | Paragraph number |
|---|---|
| Item 1, subsection 165-13(2), item 1 in the table | 4.21 |
| Item 1, subsection 165-13(2), item 2 in the table | 4.24 |
| Item 1, subsection 165-13(2), item 3 in the table | 4.25 |
| Item 2, paragraph 165-10(b) | 4.46 |
| Item 3, subsection 165-115B(3) | 4.47 |
| Item 4, subsection 165-115B(4) | 4.46 |
| Item 5, subsection 165-115BA(4) and (5) | 4.46 |
| Item 6, paragraph 165-115BA(5)(c) | 4.47 |
| Item 7, paragraph 707-125(1)(b) | 4.46 |
| Item 8, subsection 707-125(2) | 4.46 |
| Item 9, subparagraph 707-125(2)(a)(ii) | 4.47 |
| Item 10, note to subsection 707-125(2) | 4.47 |
| Item 11, subsection 715-90(2) | 4.47 |
| Item 12, note to subsection 719-260(2) | 4.46 |
| Items 13, 14 and 21, definition of 'test time' in subsection 995-1(1) | 4.47 |
| Item 16, subsection 165-126(2), item 1 in the table | 4.28 |
| Item 16, subsection 165-126(2), subitem 2(a) in the table | 4.31 |
| Item 16, subsection 165-126(2), subitem 2(b) in the table | 4.32 |
| Item 16, subsection 165-126(2), item 3 in the table | 4.33 |
| Item 17, paragraph 165-120(1)(c) | 4.46 |
| Items 18 and 19, section 165-132 | 4.47 |
| Item 20, definition of 'minimum continuity period' in subsection 995-1(1) | 4.47 |
Schedule 8: Tax losses
| Bill reference | Paragraph number |
|---|---|
| Item 1, section 245-110 in Schedule 2C to the ITAA 1936 | 5.52 |
| Item 2, section 57-75 in Schedule 2D to the ITAA 1936 | 5.52 |
| Item 3, note to subsection 268-60(5) in Schedule 2F to the ITAA 1936 | 5.52 |
| Item 4, note 3 to subsection 4-10(3A) of the ITAA 1997 | 5.50, 5.52 |
| Items 5 and 6, note to section 36-10 | 5.53 |
| Items 7 and 8, section 36-15 (heading), subsection 36-15(1) of the ITAA 1997 | 5.12 |
| Item 9, paragraph 36-17(5)(a) | 5.22 |
| Item 9, paragraph 36-17(5)(b) | 5.23 |
| Item 9, subsection 36-17(2) of the ITAA 1997 | 5.16 |
| Item 9, subsection 36-17(3) | 5.17 |
| Item 9, subsection 36-17(4) | 5.18 |
| Item 9, subsection 36-17(6) | 5.20 |
| Item 9, subsection 36-17(7) | 5.32 |
| Item 9, subsection 36-17(8) | 5.32 |
| Item 9, subsection 36-17(9) | 5.32 |
| Item 9, paragraph 36-17(10)(a) | 5.28 |
| Item 9, paragraph 36-17(10)(b) | 5.29 |
| Item 9, paragraph 36-17(10)(c) | 5.30 |
| Item 9, subsection 36-17(11) | 5.25 |
| Item 9, subsection 36-17(12) | 5.25 |
| Item 10, section 36-25, table headed 'tax losses of corporate tax entities' of the ITAA 1997 | 5.51 |
| Item 11, paragraph 36-55(1)(a) of the ITAA 1997 | 5.39 |
| Item 11, paragraph 36-55(1)(b) | 5.40 |
| Item 11, subsection 36-55(2) | 5.42 |
| Item 12, note to subsection 165-70(5) of the ITAA 1997 | 5.52 |
| Item 13, note to section 165-70 | 5.53 |
| Item 14, subsection 170-20(1) of the ITAA 1997 | 5.52 |
| Item 15, subsection 170-45(1) of the ITAA 1997 | 5.35 |
| Item 16, note to subsection 175-35(5) of the ITAA 1997 | 5.52 |
| Item 17, note to section 175-35 | 5.53 |
| Items 19 to 21, notes to definitions of 'loss year' and 'tax loss' in subsection 995-1(1) of the ITAA 1997 | 5.53 |
| Item 18, definition of 'excess franking offsets' in subsection 995-1(1) | 5.41 |
| Items 22 and 23, subsections 45-330(2A) and (3) in Schedule 1 to the TAA 1953 | 5.49 |
| Subitems 24(1) and (2) | 5.43 |
| Subitem 24(3) | 5.44 |
| Subitem 24(4) | 5.45 |