Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 180 - Information about family trusts with interests in companies  

Subdivision 180-A - Information relevant to Division 165  

SECTION 180-10   Notice where requirements of section 180-5 are met  

Information required

180-10(1)    

The notice that the Commissioner may give if the requirements of section 180-5 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 in Schedule 2F to the Income Tax Assessment Act 1936 ) of, income and capital, since the start of:

(a) if paragraph 180-5(2)(a) applies - the *loss year mentioned in that paragraph; or

(b) if paragraph 180-5(2)(b) applies - the income year for which that paragraph is being applied; or

(c) if paragraph 180-5(2)(c) applies - the earlier income year mentioned in that paragraph; or

(d) if paragraph 180-5(2)(d) applies:

(i) where the debt mentioned in that paragraph was incurred in an earlier income year - the day on which the debt was incurred; or

(ii) where the debt mentioned in that paragraph was incurred in the income year mentioned in that paragraph - that income year;

by all of the *family trusts meeting the requirements of paragraph 180-5(4)(a) or (b).

Company knowledge

180-10(2)    
The information need not be within the knowledge of the company at the time the notice is given.

Period for giving information

180-10(3)    
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.

Consequence of not giving the information

180-10(4)    
If the company does not give the information within the period or within such further period as the Commissioner allows:

(a) if paragraph 180-5(2)(a) applies - the company is not entitled, and is taken never to have been entitled, to deduct the *tax loss; or

(b) if paragraph 180-5(2)(b) applies - the company is required, and taken always to have been required:

(i) to calculate its taxable income and tax loss for the income year under Subdivision 165-B ; and

(ii) to calculate its *net capital gain and *net capital loss for the income year under Subdivision 165-CB ; or

(c) if paragraph 180-5(2)(c) applies - the company is not entitled, and is taken never to have been entitled, to apply the net capital loss; or

(d) if paragraph 180-5(2)(d) applies - the company is not entitled, and is taken never to have been entitled, to deduct the debt.

180-10(5)    
If, because of paragraph (4)(b), the company is required to calculate under Subdivision 165-B its taxable income and *tax loss for the income year concerned, that Subdivision is to be applied as if it required the income year to be divided into such periods as would result in the highest possible taxable income for the income year.

180-10(6)    
If, because of paragraph (4)(b), the company is required to calculate under Subdivision 165-CB its *net capital gain and *net capital loss for the income year concerned, that Subdivision is to be applied as if it required the income year to be divided into such periods as would result in the highest net capital gain for the income year.

No offences or penalties

180-10(7)    

To avoid doubt, subsections (4) to (6) do not cause the company to commit any offence or be liable to any penalty under Part 4-25 in Schedule 1 to the Taxation Administration Act 1953 for:

(a) deducting the *tax loss; or

(b) not calculating its taxable income and tax loss under Subdivision 165-B as it applies in accordance with subsection (5) of this section; or

(c) not calculating its *net capital gain and *net capital loss under Subdivision 165-CB as it applies in accordance with subsection (6) of this section; or

(d) applying the net capital loss; or

(e) deducting the debt;

in the company ' s *income tax return.