Income Tax Assessment Act 1936

Part XI repealed by No 114 of 2010, s 3 and Sch 1 item 37, applicable in relation to the 2010-11 year of income for a taxpayer and later years of income. No 114 of 2010, Sch 1 item 95 contains the following saving provisions:

95 Saving of regulations relating to stock exchanges  
95
Despite the repeal of the definition of approved stock exchange in section 470 of the Income Tax Assessment Act 1936 by item 37 of this Schedule, regulations made for the purposes of that definition that were in force immediately before this item commences continue in force on and after that commencement as if those regulations had been made for the purposes of the definition of approved stock exchange in the Income Tax Assessment Act 1997 as inserted by item 81 of this Schedule. 96 Saving of elections relating to foreign hybrids  
96
Despite the repeal of subsection 485AA(1) of the Income Tax Assessment Act 1936 by item 37 of this Schedule, elections made under that subsection continue to have effect on and after the commencement of this Schedule as if that repeal had not happened.

Part XI inserted by No 190 of 1992.

Div 5 repealed by No 114 of 2010, s 3 and Sch 1 item 37, applicable in relation to the 2010-11 year of income for a taxpayer and later years of income. For saving provisions, see note under Part XI heading.

S 507A repealed by No 114 of 2010, s 3 and Sch 1 item 37, applicable in relation to the 2010-11 year of income for a taxpayer and later years of income. For saving provisions, see note under Part XI heading. S 507A formerly read:

SECTION 507A EXEMPTION FOR INTEREST IN FOREIGN HOLDING COMPANY OF FOREIGN LIFE INSURANCE COMPANY  
507A(1) Interest in holding company disregarded.  

If:

(a) at the end of the notional accounting period of a foreign company (the " holding company " ), the taxpayer had an interest in the holding company that consisted of shares included in a class of shares that were quoted on the stock market of an approved stock exchange; and

(b) the holding company requirements set out in subsection (2) are satisfied; and

(c) the subsidiary company requirements set out in subsection (3) are satisfied;

the interest is disregarded for the purposes of the application of the operative provision to the taxpayer in relation to the holding company in respect of that notional accounting period.

507A(2) Holding company requirements.  

The holding company requirements are that:

(a) at the end of the notional accounting period, either:

(i) the holding company was included by an approved stock exchange in a class of companies designated by the stock exchange as engaged in the carrying on of life insurance business; or

(ii) the holding company was included by an international sectoral classification system named in regulations made for the purposes of section 499 or, until regulations are so made, by an international sectoral classification system named in Schedule 5, in a class of companies designated by the system as engaged in the carrying on of life insurance business; and

(b) throughout the notional accounting period, or the part of that period in which the taxpayer had the interest in the holding company, as the case may be, shares in the holding company that were included in the class mentioned in paragraph (1)(a) were widely held, and actively traded on a regular basis, on a stock market of an approved stock exchange.

507A(3) Subsidiary company requirements.  

The subsidiary company requirements are that:

(a) throughout the notional accounting period (the " interest holding period " ), or the part (also the " interest holding period " ) of that period in which the taxpayer had the interest in the holding company, as the case may be, one or more other foreign companies were wholly-owned subsidiaries of the holding company; and

(b) if there was only one such subsidiary, that subsidiary was:

(i) throughout the interest holding period, authorised under the law of its place of residence to carry on life insurance business; and

(ii) at the test time, principally engaged in the active carrying on of life insurance business; and

(c) if there were 2 or more such subsidiaries:

(i) throughout the interest holding period, at least one subsidiary was authorised under the law of its place of residence to carry on life insurance business; and

(ii) at their test time, the principal activities of all the subsidiaries, considered together, were the active carrying on of life insurance business.

507A(4) " Test time " .  

The " test time " in relation to a subsidiary is:

(a) if the notional accounting period is one in respect of which the accounts of the subsidiary are made out - the end of that period; or

(b) if the notional accounting period is the taxpayer ' s year of income - the end of the last period in respect of which the accounts of the subsidiary were made out that ended before the end of that year of income.

507A(5) Single subsidiary - " principally engaged in active carrying on of life insurance business " .  

For the purposes of subparagraph (3)(b)(ii), a subsidiary was principally engaged in the active carrying on of life insurance business at the test time if at that time the gross value of its assets for use in carrying on life insurance business was 50% or more of the gross value of all of its assets. For this purpose, subsections 507(3) to (11) (inclusive) apply in the same way as they apply for the purpose of paragraph 507(2)(b) .

507A(6) More than one subsidiary - " principal activities, considered together, were active carrying on of life insurance business " .  

For the purposes of subparagraph (3)(c)(ii), the question whether, at their test time, the principal activities of 2 or more subsidiaries, considered together, were the active carrying on of life insurance business is determined as follows:

(a) first, work out for each subsidiary (including by applying subsections 507(3) to (11) (inclusive) in the same way as they apply for the purpose of paragraph 507(2)(b) ):

(i) the gross value, at its test time, of the subsidiary ' s assets for use in carrying on life insurance business; and

(ii) the gross value, at its test time, of all of the subsidiary ' s assets; and

(b) secondly, work out:

(i) the sum of the gross values in subparagraph (a)(i) for all of the subsidiaries; and

(ii) the sum of the gross values in subparagraph (a)(ii) for all of the subsidiaries; and

(c) thirdly, if the sum in subparagraph (b)(i) is 50% or more of the sum in subparagraph (b)(ii), then, at their test time, the principal activities of all of the subsidiaries, considered together, were the active carrying on of life insurance business.

S 507A inserted by No 82 of 1994.