Income Tax Rates Act 1986

Schedules

SCHEDULE 7 - GENERAL RATES OF TAX  

Subsection 12(1)

PART II - NON-RESIDENT TAXPAYERS  

SECTION 2.  

2.    
Where -

(a)    the taxable income of a non-resident taxpayer consists of or includes a special income component; and

(b)    Division 16 of Part III of the Assessment Act does not apply to the income of the taxpayer; and

(c)    Division 392 (Long-term averaging of primary producers ' tax liability) of the Income Tax Assessment Act 1997 does not apply to the taxpayer ' s assessment;

the rate of tax for every $1 of the taxable income is the amount ascertained in accordance with the formula

	A+B
	C ,

where -

A is the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the reduced taxable income;

B is 5 times the difference between -

(c) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the sum of -

  (i) the reduced taxable income; and

  (ii) 20% of the special income component of the taxable income; and

(d) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the reduced taxable income; and

C is the number of whole dollars in the taxable income.

In applying the formula, component B is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.