Income Tax Assessment Act 1936
View history note
Hide history noteDiv 1A repealed by No 53 of 2015, s 3 and Sch 1 item 1, applicable in relation to the 2016-17 income year and later income years.
Division 1A comprising s 24B to s 24N inserted by No 164 of 1973.
(Repealed by No 53 of 2015)
S 24L repealed by No 53 of 2015, s 3 and Sch 1 item 1, applicable in relation to the 2016-17 income year and later income years. S 24L formerly read:
S 24L(1) amended by No 50 of 1976. subsection (2) has effect in relation to so much only of the income as is attributable to so much of the interest or royalty as is not an outgoing so incurred. S 24L(3) amended by No 50 of 1976. subsection (2) has effect in relation to so much only of the income as is attributable to so much of the interest or royalty as is an outgoing so incurred. S 24L(4A) amended by No 50 of 1976 and inserted by No 26 of 1974. the interest, the part of the interest, the royalty or the part of the royalty, as the case may be, is not an outgoing incurred by the relevant person in carrying on business in a country outside Australia at or through a permanent establishment of the relevant person in that country. S 24L(4B) amended by No 108 of 1981 and inserted by No 26 of 1974. the interest, the part of the interest, the royalty or the part of the royalty, as the case may be, is an outgoing incurred by the payer in carrying on business in Australia at or through a permanent establishment of the payer in Australia. S 24L(4C) amended by No 108 of 1981 and inserted by No 26 of 1974. S 24L(5) substituted by
No 101 of 2006
, s 3 and Sch 2 item 172, effective 14 September 2006. For
application and savings provisions
and for former wording see the
CCH Australian Income Tax Legislation archive
. S 24L(5) amended by No 2 of 2015, s 3 and Sch 4 item 15, by substituting
"
if the definition of
Australia
did not include a reference to the prescribed Territory
"
for
"
if subsection 7A(2) did not refer to Norfolk Island
"
, applicable to an income year, a year of income or a tax period that commences on or after 1 July 2015.
SECTION 24L SOURCE OF INTEREST OR ROYALTY
24L(1)
This section applies to income derived by a person who is a prescribed person, being income that consists of interest or a royalty that:
(a)
is paid to the prescribed person by the Commonwealth, by a State, by an authority of the Commonwealth or of a State or by a person who is, or by persons at least one of whom is, a resident and is not an outgoing wholly incurred by the Commonwealth, the State, the authority or that person or those persons in carrying on business in a country outside Australia at or through a permanent establishment of the Commonwealth, the State, the authority or that person or those persons in that country; or
(b)
is paid to the prescribed person by a person who is, or by persons each of whom is, a non-resident and is, or is in part, an outgoing incurred by that person or those persons in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia.
24L(2)
For the purposes of this Division, but subject to this section, income to which this section applies shall be deemed:
(a)
not to have been derived from a source in a prescribed Territory; and
(b)
not to have been derived from a source outside Australia.
24L(3)
Where:
(a)
income to which this section applies is paid to the prescribed person by whom it is derived by the Commonwealth, by a State, by an authority of the Commonwealth or of a State or by a person who is, or by persons at least one of whom is, a resident; and
(b)
the interest or royalty of which the income consists is, in part, an outgoing incurred by the Commonwealth, the State, the authority or that person or those persons in carrying on business in a country outside Australia at or through a permanent establishment of the Commonwealth, the State, the authority or that person or those persons in that country;
24L(4)
Where:
(a)
income to which this section applies is paid to the prescribed person by whom it is derived by a person who, or by persons each of whom, is a non-resident; and
(b)
the interest or royalty of which the income consists is, in part only, an outgoing incurred by the person or persons by whom it is paid in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia;
24L(4A)
In subsection (4B), a reference to a relevant person is a reference to the Commonwealth, a State, an authority of the Commonwealth or of a State or a person who is, or persons at least 1 of whom is, a resident.
24L(4B)
For the purposes of paragraphs (1)(a) and (3)(b), where:
(a)
interest or royalty is paid, after the commencement of this subsection, to a prescribed person by a relevant person carrying on business in a country outside Australia; and
(b)
the interest, a part of the interest, the royalty or a part of the royalty:
(i)
is incurred by the relevant person in gaining or producing income that is derived by the relevant person otherwise than in carrying on business in a country outside Australia at or through a permanent establishment of the relevant person in that country or is incurred by the relevant person for the purpose of gaining or producing income to be so derived; or
(ii)
is incurred by the relevant person in carrying on business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the relevant person otherwise than in so carrying on business at or through a permanent establishment of the relevant person in a country outside Australia;
24L(4C)
For the purposes of paragraphs (1)(b) and (4)(b), where:
(a)
interest or royalty is paid, after the commencement of this subsection, to a prescribed person by another person or persons (in this subsection referred to as
the payer
), being:
(i)
another person who is carrying on business in Australia and is a non-resident; or
(ii)
other persons who are carrying on business in Australia and each of whom is a non-resident; and
(b)
the interest, a part of the interest, the royalty or a part of the royalty:
(i)
is incurred by the payer in gaining or producing income that is derived by the payer in carrying on business in Australia at or through a permanent establishment of the payer in Australia or is incurred by the payer for the purpose of gaining or producing income to be so derived; or
(ii)
is incurred by the payer in carrying on a business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the payer in so carrying on business at or through a permanent establishment of the payer in Australia;
24L(5)
In subsections (1), (3), (4), (4A), (4B) and (4C),
Australia
,
resident
and
non-resident
have the meanings that those expressions would have if the definition of
Australia
did not include a reference to the prescribed Territory.
Archived:
24L(6)
For the purposes of this section, interest or a royalty shall be deemed to have been paid by a person to another person although it is not actually paid over to the other person but is reinvested, accumulated, capitalized, carried to any reserve, sinking fund or insurance fund however designated, or otherwise dealt with on behalf of the other person or as the other person directs.
S 24L inserted by No 164 of 1973.
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