S 110-10 repealed by No 143 of 2007, s 3 and Sch 1 item 6, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after 1 July 2008. No 143 of 2007, s 3 and Sch 1 Part 6 contains the following savings provisions:
Part 6
-
Savings provisions
Object
225
The object of this Part is to ensure that, despite the repeals and amendments made by this Act, the full legal and administrative consequences of:
(a)
any act done or omitted to be done; or
(b)
any state of affairs existing; or
(c)
any period ending;
before such a repeal or amendment applies, can continue to arise and be carried out, directly or indirectly through an indefinite number of steps, even if some or all of those steps are taken after the repeal or amendment applies.
Making and amending assessments, and doing other things, in relation to past matters
226
Even though an Act is repealed or amended by this Act, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument (within the meaning of the
Legislative Instruments Act 2003
):
(a)
making or amending an assessment (including under a provision that is itself repealed or amended);
(b)
exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);
in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.
Example:
For the 2006-07 income year, Smart Investor Pty Ltd, an Australian resident private investment company, has assessable foreign income in the passive income class on which it has paid foreign tax for which it wishes to claim a foreign tax credit. The company also has a tax loss for the year from its Australian investments. When it lodges its tax return for the year it does not elect to claim a deduction for any of the tax loss under section
79DA
of the ITAA 1936, because the Australian tax payable on its passive foreign income equals the foreign tax it has paid.
In 2009 the amount of foreign tax payable in respect of some foreign rental income it had included in its return for the 2006-07 year is reduced and Smart Investor receives a refund of the difference in foreign tax. Smart Investor Pty Ltd then applies to be able to make an election under section
79DA
, that is, after the
Tax Laws Amendment (2007 Measures No. 4) Act 2007
(which repeals section
79DA
) receives Royal Assent. The Commissioner allows Smart Investor to submit an election to claim a deduction for so much of its 2006-07 tax loss as to reduce the amount of Australian tax payable on its 2006-07 assessable foreign income to the revised foreign tax paid, by the end of 2009.
Despite the repeal of section
79DA
, item 226 allows the Commissioner to permit an election to be lodged after the return for 2006-07 has been lodged, and to amend Smart Investor
'
s assessment for that year, because these actions relate to a thing done, and periods ending, before the repeal of section
79DA
applies.
S 110-10 formerly read:
110-10 Transfers of excess foreign tax credits
(1)
A supply is not a *
taxable supply
if:
(a)
the supply is a transfer of an initial excess credit, or an opening excess credit balance, referred to in paragraph
160AFE(1D)(c)
of the *
ITAA 1936
; and
(b)
the transfer is in accordance with section
160AFE
of the ITAA 1936.
(2)
This section has effect despite section
9-5
(which is about what are taxable supplies).
S 110-10 inserted by No 97 of 2002, s 3 and Sch 1 item 11, applicable in relation to net amounts for tax periods starting on or after 1 July 2000.
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