Taxation Laws Amendment Act (No. 4) 1994 (181 of 1994)

Schedule 1   AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

Part 3   DIVIDEND IMPUTATION

63   After section 160ARX

Insert:

Class A deficit deferral tax-penalty

"160ARYA. A company is liable to pay, by way of penalty, additional tax equal to 30% of the class A deficit deferral tax that is payable by the company in relation to a refund if the class A deficit deferral amount that arises under subsection 160AQJA(2) in relation to the refund is greater than 10% of the amount worked out using the following formula:

Total of class A - ( 0.2 x 61 The amount of the )

franking credits ( ---------- refunds referred )

that arose in the ( 39 to in paragraph )

first franking year ( 160AQJA(1)(c) )

"160ARYB. A company is liable to pay, by way of penalty, additional tax equal to 30% of the class B deficit deferral tax that is payable by the company in relation to a refund if the class B deficit deferral amount that arises under subsection 160AQJB(2) in relation to the refund is greater than the amount worked out using the following formula:

0.1 x ( Total of class B - The adjusted amount )

( franking credits in relation to refunds )

( that arose in the referred to in paragraph )

( first franking year 160AQJB(1)(c) )".