INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 6AA - Income of certain children  

SECTION 102AH   COMMISSIONER MAY ALLOW REBATE  

102AH(1)   [Rebate]  

Subject to this section, where it is established to the satisfaction of the Commissioner that, in relation to income derived during a year of income by a prescribed person, or by a trustee on behalf of a prescribed person, under arrangements entered into on or before 26 July 1979, it would be unreasonable that the whole of the additional amount of tax payable in respect of that income by virtue of the application of this Division should be payable, the Commissioner may grant to the prescribed person or the trustee, as the case may be, in an assessment in respect of any such income, a rebate of tax of such amount (if any) as the Commissioner considers fair and reasonable, not exceeding that additional amount.

102AH(2)   [Where parent(s) of prescribed person has taxable income]  

In a case where a parent of the prescribed person, or the parents of the prescribed person, has or have in relation to the year of income a taxable income or taxable incomes, neither the prescribed person nor any trustee is entitled to a rebate under subsection (1) in relation to income that is subject to tax by virtue of the application of this Division, unless it is established to the Commissioner's satisfaction that the tax payable in respect of that income under this Act, apart from this section and Division 340 in Schedule 1 to the Taxation Administration Act 1953 , is greater than the tax that would have been payable in respect of that income if the parent of the prescribed person who has the higher taxable income (or in a case where the parents have equal taxable incomes, the father) had been liable to pay tax in respect of an amount equal to the taxable income of that parent increased by so much of the aggregate of the incomes of the children of that parent, or of trustees for the children, as represents income to which this Division applies that was derived under arrangements entered into on or before 26 July 1979.

102AH(3)   [Matters to be considered by Commissioner]  

In determining the amount of any rebate that may be granted to a person in accordance with subsection (1):

(a) the Commissioner may, if he is satisfied that the aggregated taxable income referred to in subsection (2) was, by reason of any tax avoidance agreement, lower than it would have been but for any such agreement, take that factor into account as a factor operating against the granting of the rebate; and

(b) the Commissioner may have regard to such other matters as he thinks fit.

102AH(4)   [Amendment of assessments]  

Where the Commissioner, in an assessment, has granted a rebate to a person under this section and the Commissioner subsequently forms the opinion that the rebate should not have been granted or that a lesser rebate should have been granted, nothing in section 170 prevents the amendment of the assessment for the purpose of disallowing or reducing the rebate, as the case may be.

102AH(5)   [Amendment of assessments for purpose of granting rebate]  

Nothing in section 170 prevents the amendment of an assessment at any time for the purpose of granting a rebate under this section or increasing a rebate granted under this section.

102AH(6)   [``tax avoidance agreement'']  

In this section, tax avoidance agreement means an agreement, not being an agreement entered into or carried out in the course of ordinary family or commercial dealing, that was entered into or carried out by any person for the purpose, or for purposes that included the purpose, of securing that a person who, if the agreement had not been entered into or carried out, would have been liable to pay income tax in respect of a year of income would not be liable to pay income tax in respect of that year of income or would be liable to pay less income tax in respect of that year of income than that person would have been liable to pay if the agreement had not been entered into or carried out.