A New Tax System (Tax Administration) Act 1999 (179 of 1999)

Schedule 3   Binding oral advice on income tax matters

Part 2   Consequential amendment of Act

Income Tax Assessment Act 1936

5   After section 170BB

Insert:

170BCA Effect of oral ruling on tax other than withholding tax

(1) In this section:

final tax has the same meaning as in section 170BA.

(2) Expressions used in this section have the same meanings as in Division 360 (Oral rulings) in Schedule 1 to the Taxation Administration Act 1953.

(3) If:

(a) there is an oral ruling on the way in which an income tax law applies to a person in respect of a year of income in relation to an oral ruling arrangement ( ruled way ); and

(b) that law applies to that person in respect of that year in relation to that arrangement in a different way; and

(c) the amount of final tax under an assessment in relation to that person would (apart from this section and sections 170BDA, 170BDB and 170BDC) exceed what it would have been if that law applied in the ruled way;

the assessment and amount of final tax must be what they would be if that law applied in the ruled way.

(4) This section has effect subject to sections 170BDA, 170BDB and 170BDC.

Note: The heading to section 170BC is replaced by the heading " Assessment of tax other than withholding tax if public or private rulings conflict ".