Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 12   Personal service business determinations

Part 1   Amendments applying from the 2000-2001 income year

Income Tax Assessment Act 1997

5   Subsection 87-65(3)

Repeal the subsection, substitute:

Matters about which the Commissioner must be satisfied

(3) The Commissioner must not make the determination unless satisfied that, in the income year during which the determination first has effect, or is taken to have first had effect, the conditions in one or more of subsections (3A), (3B) and (5) are met.

First alternative - - results, employment or business premises test met or reasonably expected to be met

(3A) The conditions in this subsection are that:

(a) the entity could reasonably be expected to meet, or met, the results test under section 87-18, the employment test under section 87-25, the business premises test under section 87-30 or more than one of those tests; and

(b) the individual's *personal services income included in the entity's *ordinary income or *statutory income could reasonably be expected to be, or was, from the entity conducting activities that met one or more of those tests.

Second alternative - unusual circumstances prevented one of the personal services business tests from being met

(3B) The conditions in this subsection are that:

(a) but for unusual circumstances applying to the entity in that year, the entity could reasonably have been expected to meet, or would have met, at least one of the 4 *personal services business tests; and

(b) the individual's *personal services income included in the entity's *ordinary income or *statutory income could reasonably be expected to be, or was, from the entity conducting activities that met one or more of those tests.