INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 9B - State Bank of NSW  

SECTION 121EP   EFFECT OF UNFUNDED PRE-FIRST TAXING TIME SUPERANNUATION LIABILITIES  

121EP(1)   [Application]  

This section applies to a deduction under section 82AAC in respect of a contribution made in relation to a person who was an employee of the NSW State Bank at the first taxing time.

121EP(2)   [When NSW State Bank cannot claim a deduction]  

A deduction to which this section applies is not allowable to the NSW State Bank for any year of income unless the requirements of subsections (3) and (4) are complied with.

121EP(3)   [NSW State Bank must obtain certificate from actuary]  

For the deduction to be allowable, the NSW State Bank must obtain a certificate by an authorised actuary stating the actuarial value, as at the first taxing time, of liabilities of the NSW State Bank to provide superannuation benefits for, or for dependants of, employees of the Bank, where the liabilities:

(a) had accrued as at the first taxing time; and

(b) were, according to actuarial principles, unfunded at that time.

121EP(4)   [Certificate must be in approved form]  

The certificate must be in a form approved in writing by the Commissioner. The NSW State Bank must obtain the certificate:

(a) before the date of lodgment of its return of income of the year of income in which the first taxing time occurs; or

(b) within such further time as the Commissioner allows.

121EP(5)   [Deductions less than or equal to unfunded liability limit]  

If the NSW State Bank obtains the certificate, a deduction to which this section applies is nevertheless not allowable for a year of income if the sum of all deductions to which this section applies for the year of income is less than or equal to the unfunded liability limit (see subsection (7)) for the year of income.

121EP(6)   [Where partial deduction allowed]  

If the sum is greater than that limit, so much of the deduction as is worked out using the following formula is not allowable:

Amount of deduction                             Sum of all deductions to which this   section applies for the year of income

×

Unfunded liability limit for the year of       income

121EP(7)   [Unfunded liability limit]  

The unfunded liability limit for a year of income is:

(a) if the year of income is the one in which the first taxing time occurs - the actuarial value of the liabilities set out in the actuary's certificate; or

(b) in any other case - that actuarial value as reduced by the total amount of deductions to which this section applies that, because of subsection (5), have not been allowable to the NSW State Bank for all previous years of income.

121EP(8)   [Interpretation]  

Expressions used in this Division that are also used in section 82AAC have the same respective meanings as in that section.