Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-10 - PAY AS YOU GO (PAYG) INSTALMENTS  

Division 45 - Instalment payments  

Subdivision 45-P - Anti-avoidance rules  

SECTION 45-600   GENERAL INTEREST CHARGE ON TAX BENEFIT RELATING TO INSTALMENTS  

45-600(1)    
You are liable to pay the *general interest charge under section 45-620 if:

(a) you get a *tax benefit from a *scheme; and

(b) the tax benefit relates to a *component of your *tax position for an income year, and that component is covered by section 45-610 ; and

(c) having regard to the matters referred to in subsection (3), it would be concluded that an entity that entered into or carried out the scheme (or part of it) did so for the sole or dominant purpose of:

(i) an entity (whether you, that entity or another entity) getting one or more tax benefits from the scheme; or

(ii) 2 or more entities (whether or not including you or that entity) each getting one or more tax benefits from the scheme.

45-600(2)    
It does not matter:

(a) whether or not you entered into or carried out the *scheme (or part of it); or

(b) whether the entity that entered into or carried out the scheme (or part of it) did so alone or together with one or more others; or

(c) whether the scheme (or any part of it) was entered into or carried out inside or outside Australia; or

(d) whether or not the *tax benefit you got is of the same kind as a tax benefit mentioned in paragraph (1)(c).

Matters to be considered in determining purpose of scheme

45-600(3)    
In considering an entity ' s purpose in entering into or carrying out a *scheme (or part of one), have regard to these matters:

(a) the manner in which the scheme or part was entered into or carried out;

(b) the form and substance of the scheme, including:

(i) the legal rights and obligations involved in the scheme; and

(ii) the economic and commercial substance of the scheme;

(c) the purposes and objects of this Part and of any relevant provisions of this Part (whether those purposes and objects are stated expressly or not);

(d) the timing of the scheme;

(e) the period over which the scheme was entered into and carried out;

(f) the effect that this Act would have in relation to the scheme apart from this Subdivision;

(g) any change in your financial position that has resulted from the scheme, or may reasonably be expected to result from it;

(h) any change that has resulted from the scheme, or may reasonably be expected to result from it, in the financial position of an entity that has or had a connection or dealing with you, whether the connection or dealing is or was of a family, business or other nature;

(i) any other consequence for you, or for such an entity, of the scheme having been entered into or carried out;

(j) the nature of the connection between you and such an entity, including the question whether the dealing is or was at *arm ' s length.

GIC is payable on each of 2 or more tax benefits

45-600(4)    
If you get 2 or more *tax benefits from the *scheme, this section has a separate application to each of them.