Income Tax Assessment Act 1997

CHAPTER 1 - INTRODUCTION AND CORE PROVISIONS

PART 1-4 - CHECKLISTS OF WHAT IS COVERED BY CONCEPTS USED IN THE CORE PROVISIONS

Division 9 - Entities that must pay income tax

SECTION 9-5 Entities that work out their income tax by reference to something other than taxable income

9-5(1)

For some entities, some or all of their income tax for the ^* financial year is worked out as described in the table.

Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .

Item	This kind of entity is liable to pay income tax worked out by reference to:	See:
1	A company that was a member of a wholly-owned group is jointly and severally liable to pay an amount of income tax if a former subsidiary in the group is treated as having disposed of leased plant and does not pay all of the income tax resulting from that treatment.	section 45-25
.
1A	The trustee of an attribution managed investment trust (AMIT) is liable to pay income tax on certain amounts reflecting under-attribution of income or over-attribution of tax offsets	sections 276-405 to 276-425
.
2	A superannuation provider in relation to a complying superannuation fund is to be assessed and is liable to pay income tax on no-TFN contributions income as well as on taxable income.	sections 295-5 and 295-605
.
3	A superannuation provider in relation to a non-complying superannuation fund is to be assessed and is liable to pay income tax on no-TFN contributions income as well as on taxable income.	sections 295-5 and 295-605
.
4	An RSA provider is to be assessed and is liable to pay income tax on no-TFN contributions income as well as on taxable income.	sections 295-5 , 295-605 and 320-155
.
4A	(Repealed by No 92 of 2020)
.
5	An Australian resident individual with: • eligible foreign remuneration under section 23AF; or • foreign earnings under section 23AG; (from working in a foreign country) is liable to pay income tax worked out by reference to his or her assessable income less some of his or her deductions.	section 23AF or 23AG
.
6	A trustee covered by item 11 in the table in section 9-1 is liable to pay income tax worked out by reference to the net income of the trust for the income year.	sections 98 , 99 and 99A
.
7	(Repealed by No 53 of 2016)
.
8	The trustee of a public trading trust is liable to pay income tax worked out by reference to the net income of the trust for the income year.	section 102S
.
9	An entity that is liable to pay income tax (worked out by reference to taxable income or otherwise) is also liable to pay income tax worked out by reference to diverted income or diverted trust income for the income year.	section 121H
.
10	An Australian insurer that re-insures overseas can elect to pay, as agent for the re-insurer, income tax worked out by reference to the amount of the re-insurance premiums.	section 148

View history note

History

S 9-5(1) amended by No 8 of 2022, s 3 and Sch 5 item 9, by inserting table item 1A, effective 1 July 2022.

S 9-5(1) amended by No 92 of 2020, s 3 and Sch 5 item 12, by repealing table item 4A, effective 1 January 2021 and applicable in relation to assessments for income years commencing on or after 1 July 2021. Table item 4A formerly read:

4A An entity is liable to pay extra income tax on government recoupments relating to R & D activities for which entitlements to tax offsets arise under Division 355. Subdivision 355-G

S 9-5(1) amended by No 53 of 2016, s 3 and Sch 5 item 30, by repealing table item 7, applicable to assessments for income years starting on or after 1 July 2016. For transitional provision, see note under s 295-173 . Table item 7 formerly read:

7 The trustee of a corporate unit trust is liable to pay income tax worked out by reference to the net income of the trust for the income year. section 102K

S 9-5(1) amended by No 93 of 2011, s 3 and Sch 3 item 55, by inserting table item 4A, effective 8 September 2011. For application, savings and transitional provisions see note under Div 355 heading.

S 9-5(1) amended by No 143 of 2007 , s 3 and Sch 5 items 34 to 39, by making the section references in table items 5 to 10 bold, effective 15 March 2007 and applicable to the 2007-2008 income year and later years.

S 9-5(1) amended by No 15 of 2007, s 3 and Sch 1 item 150, by substituting " sections 295-5, 295-605 and 320-155 " for " sections 295-5 and 295-605 " in table item 4, applicable to the 2007-2008 income year and later years.

S 9-5(1) (table) substituted by No 9 of 2007 , s 3 and Sch 1 item 6, applicable to the 2007-2008 income year and later years. The table formerly read:

" Item	This kind of entity is liable to pay income tax worked out by reference to:	See:
1AA	A company that was a member of a wholly-owned group is jointly and severally liable to pay an amount of income tax if a former subsidiary in the group is treated as having disposed of leased plant and does not pay all of the income tax resulting from that treatment.	section 45-25
.
1A.	An Australian resident individual with:	section 23AF or 23AG
	•	eligible foreign remuneration under section 23AF ; or
	•	foreign earnings under section 23AG ;
	(from working in a foreign country) is liable to pay income tax worked out by reference to his or her assessable income less some of his or her deductions.
.
1.	A trustee covered by item 5 in the table in section 9-1 is liable to pay income tax worked out by reference to the net income of the trust for the income year.	sections 98, 99 and 99A
.
2.	The trustee of a corporate unit trust is liable to pay income tax worked out by reference to the net income of the trust for the income year.	section 102K
.
3.	The trustee of a public trading trust is liable to pay income tax worked out by reference to the net income of the trust for the income year.	section 102S
.
4.	An entity that is liable to pay income tax (worked out by reference to taxable income or otherwise) is also liable to pay income tax worked out by reference to diverted income or diverted trust income for the income year.	section 121H
.
5.	An Australian insurer that re-insures overseas can elect to pay, as agent for the re-insurer, income tax worked out by reference to the amount of the re-insurance premiums.	section 148 "

S 9-5(1) amended by No 169 of 1999 and No 16 of 1998.

9-5(2)
For entities covered by an item in the table in subsection (1) , the income year is the same as the ^* financial year, except in these cases:

(a) for a company, or an entity covered by item 2 or 3 in the table, the income year is the previous financial year;

(b)

View history reference

if an entity has an accounting period that is not the same as the financial year, each such accounting period or, for a company, each previous accounting period is an income year.

Note 1:

The Commissioner can allow an entity to adopt an accounting period ending on a day other than 30 June. See section 18 of the Income Tax Assessment Act 1936 .

Note 2:

An accounting period ends, and a new accounting period starts, when a partnership becomes, or ceases to be, a VCLP, an ESVCLP, an AFOF or a VCMP. See section 18A of the Income Tax Assessment Act 1936 .

View history note

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