A New Tax System (Tax Administration) Act 1999 (179 of 1999)

Schedule 6   Shorter period of review (SPOR) taxpayers

Part 1   Income Tax Assessment Act 1936

3   Subsections 161E(1) and (2)

Repeal the subsections, substitute:

(1) The taxpayer must retain the declaration:

(a) if the taxpayer is not a SPOR taxpayer for the year of income to which the return or application for amendment relates - for 5 years after the declaration is made; or

(b) if the taxpayer is a SPOR taxpayer for the year of income to which the return or application for amendment relates - until the end of 2 years starting on:

(i) the day on which tax is due and payable under the taxpayer's assessment or amended assessment for that year of income; or

(ii) if no tax is due and payable for that year of income - the 30th day after the day on which notice from the Commissioner containing a statement to that effect is served on the taxpayer.

(2) The taxpayer must produce the declaration if requested to do so by the Commissioner within the period of 5 years or 2 years, as the case requires.

(2A) If:

(a) either of the following subparagraphs applies:

(i) the taxpayer is not a SPOR taxpayer for the year of income to which the return or application for amendment relates but had reasonable grounds to believe that he or she was a SPOR taxpayer for that year of income;

(ii) the taxpayer was a SPOR taxpayer for that year of income but ceased to be a SPOR taxpayer for that year of income as a result of an amended assessment notice of which was served on the taxpayer after the 2 years referred to in paragraph (1)(b); and

(b) if the Commissioner served on the taxpayer within the 2 years referred to in paragraph (1)(b) a notice requiring him or her to produce the declaration and the taxpayer was capable of doing so - the taxpayer complied with the notice;

the taxpayer is not guilty of an offence for:

(c) failing to retain the declaration for the 5 years referred to in paragraph (1)(a); or

(d) failing to produce the declaration within that period because the declaration had not been retained.