Tax Laws Amendment (2007 Measures No. 3) Act 2007 (79 of 2007)

Schedule 1   Distributions to entities connected with a private company and related issues

Part 4   Application

43   Application

(1) The amendments made by this Schedule apply to assessments for the income year in which 1 July 2006 occurred and later income years.

(2) Despite subitem (1), the amendments made by this Schedule to the Fringe Benefits Tax Assessment Act 1986 apply to benefits provided in a year of tax that begins on or after 1 April 2007.

(3) If:

(a) a loan was made in a year of tax that began before 1 April 2007; and

(b) the loan is covered under paragraph (s) of the definition of fringe benefit in the Fringe Benefits Tax Assessment Act 1986 (as added by this Schedule); and

(c) because of the loan, a loan benefit is taken under subsection 16(1) of the Fringe Benefits Tax Assessment Act 1986 to be provided in respect of a year of tax that begins on or after 1 April 2007;

treat the loan benefit as not being a fringe benefit for the purposes of that Act.

(4) Despite subitem (1), the following rules apply:

(a) the amendments made by this Schedule, to they extent that they relate to section 109RB of the Income Tax Assessment Act 1936, apply in relation to the 2001-02 income year and later income years;

(b) the Commissioner may make decisions under that section on and after the commencement of that section in relation to events that occurred before that commencement;

(c) however, the Commissioner cannot make a decision under paragraph 109RB(2)(b) of that Act if the dividend mentioned in subparagraph 109RB(1)(a)(i) of that Act is taken to have been paid before 1 July 2002;

(d) the Commissioner may amend a franking assessment made before the commencement of this item for the purpose of giving effect to a decision under section 109RB of that Act, if the amendment is made within 4 years after that commencement.

(5) Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:

(a) the assessment was made before the commencement of this item; and

(b) the amendment is made within 4 years after that commencement; and

(c) the amendment is made for the purpose of giving effect to a decision of the Commissioner under section 109RB of that Act.

(6) Despite subitem (1), the amendment made by Part 3 of this Schedule applies to franking assessments for the income year in which 1 July 2006 occurred and later income years.