Income Tax Assessment Act 1936

PART VA - TAX FILE NUMBERS  

Division 4 - Quotation of tax file numbers in connection with certain investments  

SECTION 202D   EXPLANATION OF TERMS: INVESTMENT, INVESTOR, INVESTMENT BODY  

202D(1A)    

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.

202D(1)    

Investments of the kinds mentioned in column 1 of the following table are investments to which this Part applies, whether or not the investments come into existence before the commencement of this section.

Table

Table

Item No.	Column 1 Investment	Column 2 Investor	Column 3 Investment body
1	Interest-bearing account with a financial institution	The person in whose name the account is held	The financial institution
2	Interest-bearing deposit (other than a deposit to the credit of an account) with a financial institution	The person in whose name the deposit is made	The financial institution
3	Loan of money to a government body or to a body corporate (other than a deposit to the credit of an account referred to in item 1, a deposit to which item 2 applies or a loan made in the ordinary course of the business of providing business or consumer finance by a person who carries on that business)	The person in whose name the money is lent	The government body or body corporate
4	Deposit of money with a solicitor for the purpose of:	The person for whose benefit the money is to be invested or lent	The solicitor
	(a)	being invested by the solicitor; or
	(b)	being lent under an agreement to be arranged by or on behalf of the solicitor
5	Units in a unit trust	The person in whose name the units are held	The manager of the unit trust
6	Shares in a public company	The shareholder	The company
7	An investment-related betting chance	The betting investor	The betting investment body

202D(2)    
In relation to an investment of a kind mentioned in column 1 of an item in the table in subsection (1):

(a) the investor is the person specified in column 2 of the item; and

(b) the investment body is the person specified in column 3 of the item.

202D(3)    
Where:

(a) by virtue of subsection (2), a body corporate other than an entrepot nominee company is the investor in relation to an investment; and

(b) another person is entitled to receive from the body corporate all or part of the income from the investment;

the person's right to receive the income or part of the income is an investment to which this Part applies.

202D(3A)    

In the case of an investment that is a relevant Part VA investment for the purposes of section 221YHZLA , subsection (3) does not apply to a person's right to receive income if:

(a) the body corporate concerned has received a payment of the kind referred to in paragraph 221YHZLA(2)(a) ; and

(b) the circumstances referred to in subparagraph 221YHZLA(2)(c)(i) or (ii) in relation to an applicant exist in relation to the body corporate.

202D(4)    
In relation to an investment referred to in subsection (3):

(a) the person entitled to receive income is the investor; and

(b) the body corporate is the investment body.

202D(5)    
Subsection (4) does not affect a person's status or obligations as an investor by virtue of subsection (2).

202D(6)    

In determining whether a person in the capacity of trustee of a trust estate is an investor in relation to an investment, it is irrelevant that the name of the trust estate, the name of any actual or potential beneficiary or any other indication of trust is shown on any documentation in connection with the investment.

202D(7)    

Subsection (6) is enacted for the guidance and information of investors and investment bodies and does not, by implication, affect the meaning of other provisions of this Act dealing with trustees and trust estates.

202D(8)    

If subparagraph 26AJ(1)(a)(ii) and paragraphs 26AJ(1)(b), (c), (d), (e), (f) and (g) apply in relation to the payment or crediting of an amount to a person, being the taxpayer referred to in subsection 26AJ(1) , then:

(a) for the purposes of this section:

(i) the betting chance referred to in paragraph 26AJ(1)(c) is an investment-related betting chance; and

(ii) the person is the betting investor in relation to the investment-related betting chance; and

(iii) the investment body referred to in paragraph 26AJ(1)(c) is the betting investment body in relation to the investment-related betting chance; and

(b) for the purposes of this Part, and for the purposes of Subdivision 12-E in Schedule 1 to the Taxation Administration Act 1953 :

(i) the betting chance referred to in paragraph 26AJ(1)(c) is taken to be an investment; and

(ii) the amount paid or credited is taken to be income in respect of the investment.

202D(9)    

For the purposes of subsection (3), an entrepot nominee company is a body corporate that is:

(a) controlled solely by a securities dealer or by 2 or more persons each of whom is a securities dealer; and

(b) operated for the sole purpose of facilitating settlement of security transactions.