Income Tax Assessment Act 1936
View history note
Hide history notePart IX repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-2008 income year and later years.
Former Part IX inserted by No 97 of 1989 and amended by No 105 of 1989.
Div 1 repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-2008 income year and later years.
(Repealed by No 15 of 2007)
S 273 repealed by No 15 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-08 income year and later years. S 273 formerly read:
This section applies to income derived in a year of income by a fund or unit trust (in this section called the
"
entity
"
) that is a complying superannuation fund, a complying ADF or a PST in relation to the year of income. A dividend paid to the entity by a company that is a private company in relation to the year of income of the company in which the dividend was paid is special income of the entity unless the Commissioner is of the opinion that it would be reasonable not to treat the dividend as special income of the entity, having regard to:
S 273(2) amended by No 63 of 1998.
SECTION 273 SPECIAL INCOME
273(1)
[Application of section]
273(2)
[Dividends paid by private company]
(a)
the value of the shares in that company that are assets of the entity;
(b)
the cost to the entity of the shares on which the dividend was paid by the company;
(c)
the rate of the dividend paid to the entity by the company on the shares in the company that are assets of the entity;
(d)
whether the company has paid a dividend on other shares in the company and, if so, the rate of that dividend;
(e)
whether any shares have been issued by the company to the entity in satisfaction of, or of a part of, a dividend paid by the company and, if so, the circumstances of the issue of those shares; and
(f)
any other matters that the Commissioner considers relevant.
273(3) [Indirect dividend from private company]
For the purposes of subsection (2), income that, in the opinion of the Commissioner, was derived by the entity indirectly from a dividend paid by a company, being a private company in relation to the year of income of the company in which the dividend was paid, shall be deemed to have been a dividend paid to the entity by the company.
273(4) [Income from non-arm ' s length transaction]
Income (other than a dividend to which subsection (2) applies or income derived by the entity in the capacity of beneficiary of a trust estate) derived by the entity from a transaction is special income of the entity if the parties to the transaction were not dealing with each other at arm ' s length in relation to the transaction and that income is greater than the income that might have been expected to have been derived by the entity from the transaction if those parties had been dealing with each other at arm ' s length in relation to the transaction.
S 273(4) amended by No 96 of 1999.
273(5) [Reference to transaction]
A reference in subsection (4) to a transaction includes a reference to a series of transactions.
273(6) [Entity as beneficiary of trust estate]
Income derived by the entity in the capacity of beneficiary of a trust estate (other than by virtue of holding a fixed entitlement to the income) is special income of the entity.
S 273(6) inserted by No 96 of 1999.
273(7) [Where fixed entitlement to income]
Income derived by the entity in the capacity of beneficiary of a trust estate by virtue of holding a fixed entitlement to the income is special income of the entity if:
(a) the entity acquired the fixed entitlement under an arrangement (see subsection (8)), or the income was derived under an arrangement, some or all of the parties to which were not dealing with each other at arm ' s length in relation to the arrangement; and
(b) the amount of the income is greater than might have been expected to have been derived by the entity if those parties had been dealing with each other at arm ' s length in relation to the arrangement.
S 273(7) inserted by No 96 of 1999.
273(8) [ " arrangement " ]
In subsection (7), arrangement means:
(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and
(b) any scheme, plan, proposal, action, course of action or course of conduct.
S 273(8) inserted by No 96 of 1999.
273(9) [Applications]
This section:
(a) applies to a non-share equity interest in the same way as it applies to a share; and
(b) applies to an equity holder in the same way as it applies to a shareholder; and
(c) applies to a non-share dividend in the same way as it applies to a dividend.
S 273(9) inserted by No 163 of 2001.
S 273 inserted by No 97 of 1989.
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