Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 9C - Assessable income diverted under certain tax avoidance schemes  

SECTION 121F   INTERPRETATION  

121F(1)    

In this Division, unless the contrary intention appears:

agreement
means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.

consideration
includes a benefit of any kind.

diverted income
, in relation to a taxpayer, means all the amounts that are included under this Division in the diverted income of the taxpayer.

diverted trust income
, in relation to a trustee of a trust estate, means all the amounts that are included under this Division in the diverted trust income of the trust estate.

friendly society dispensary
(Repealed by No 154 of 1981)

income
includes all amounts that, apart from the operation of the relevant exempting provisions, would be assessable income.

property
includes:

(a) a chose in action;

(b) any estate, interest, right or power, whether at law or in equity, in or over property; and

(c) any right to receive income.

public company rate
means the rate of tax payable in respect of the taxable income of a company that is not a private company.

relevant exempting provision
means any of the following provisions:

(a) (Repealed by No 101 of 2006 )

(aa) section 50-5 , 50-10 , 50-15 , 50-25 , 50-30 , 50-40 or 50-45 of the Income Tax Assessment Act 1997 ;

(b) paragraph 23(ja) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987 ;

(baa) paragraph 23(x) as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1988 ;

(ba) section 23F , 23FA or 23FB , as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 4) 1987 ;

(bb) paragraph 23(jaa) or section 23FC or 23FD , as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1989 ;

(bc) section 24AM ;

(c) paragraph 320-37(1)(a) of the Income Tax Assessment Act 1997 ;

(ca) (Repealed by No 46 of 1998)

(cb) regulations under the International Organisations (Privileges and Immunities) Act 1963 , insofar as those regulations provide that an organisation is not liable to income tax;

(d) any provision of an Act other than this Act to the effect that income of a particular person or body is not subject to taxation under any law of the Commonwealth or to the effect that a particular person or body is not subject to taxation under any law of the Commonwealth.

right to receive income
, in relation to a person, means a right of the person to have income that will or may be derived (whether from property or otherwise) paid to, or applied or accumulated for the benefit of, the person.

tax avoidance agreement
means an agreement that was entered into after 24 June 1980 and was entered into or carried out for the purpose, or for purposes that included the purpose, of securing that a person who, if the agreement had not been entered into or carried out, would have been liable to pay income tax in respect of a year of income would not be liable to pay income tax in respect of that year of income or would be liable to pay less income tax in respect of that year of income than that person would have been liable to pay if the agreement had not been entered into or carried out.

taxpayer
does not include a partnership.

121F(2)    
In determining for the purposes of this Division whether an agreement is a tax avoidance agreement, no regard shall be had to a purpose that is a merely incidental purpose.

121F(3)    
For the purposes of this Division, an agreement shall be taken to have been entered into or carried out for a particular purpose, or for purposes that included a particular purpose, if any of the parties to the agreement entered into or carried out the agreement for that purpose, or for purposes that included that purpose, as the case may be.

121F(4)    
A reference in this Division to a person shall be read as including a reference to a person in the capacity of a trustee.

121F(5)    
For the purposes of the application of this Division in relation to property acquired under a tax avoidance agreement, a reference to income that is derived from that property shall be read as including a reference to income that is derived from the disposal of that property, of any part of that property or of any interest in that property.