INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 2A - Calculation of taxable income  

Subdivision B - Calculation of taxable income where disqualifying event occurs  

SECTION 50Q   NOTICE WHERE REQUIREMENTS OF SECTION 50P ARE MET  

50Q(1)   Information required.  

The notice that the Commissioner may give if the requirements of subsections 50P(2) to (5) are met must require the company to give the Commissioner specified information about conferrals of present entitlements to, and distributions (within the meaning of Subdivision 272-B of Schedule 2F ) of, income and capital, since the start of the income year to which the return relates, by all of the family trusts meeting the requirements of paragraph 50P(4)(a) or (b).

50Q(2)   Company knowledge.  

The information need not be within the knowledge of the company at the time the notice is given.

50Q(3)   Period for giving information.  

The notice must specify a period within which the company is to give the information. The period must not end earlier than 21 days after the day on which the Commissioner gives the notice.

50Q(4)   Consequence of not giving the information.  

If the company does not give the information within the period or within such further period as the Commissioner allows:

(a) if paragraph 50P(2)(a) applies - the company is required, and is taken always to have been required, to calculate its taxable income of the year of income in accordance with section 50C ; or

(b) if paragraph 50P(2)(b) applies - the company is not entitled, and is taken never to have been entitled, to take into account the amount by reason of subsection 50D(2) .

50Q(5)   [Calculations in accordance with s 50C]  

If, because of paragraph (4)(a), the company is required to calculate its taxable income for the year of income in accordance with section 50C , that section is to be applied as if it required the year of income to be divided into such relevant periods as would result in the highest possible taxable income for the year of income.

50Q(6)   No offences or penalties.  

To avoid doubt, subsections (4) and (5) do not cause the company to commit any offence or be liable to any penalty under Part VII for not calculating its taxable income in accordance with section 50C , or for taking into account the amount by reason of subsection 50D(2) , in the company's return.