Income Tax Amendment Regulations 2004 (No. 3) (115 of 2004)

Schedule 1   Amendments

[8]   Regulations 152B to 152H

substitute

152B Income or profits as designated concession income

(1) For the definition of designated concession income in section 317 of the Act, if:

(a) a listed country is mentioned in column 2 of an item in Part 2 of Schedule 9; and

(b) an entity mentioned in column 3 of the item derived income or profits that are:

(i) of a kind specified in column 4 of the item; and

(ii) further described in column 5 of the item;

the income or profits are designated concession income.

(2) For subregulation (1), the income or profits of an entity include:

(a) the entity's interest in the income or profits of a partnership in which the entity is a partner; and

(b) the entity's beneficial interest in the income or profits of a trust estate in which the entity is a beneficiary.

152C Broad-exemption listed countries and limited-exemption listed countries

(1) For the definition of broad-exemption listed country in subsection 320 (1) of the Act, a foreign country or a part of a foreign country listed in Part 1 of Schedule 10 is declared to be a broad-exemption listed country for the purposes of Part X of the Act.

(2) For the definition of limited-exemption listed country in subsection 320 (1) of the Act, a foreign country or a part of a foreign country listed in Part 2 of Schedule 10 is declared to be a limited-exemption listed country for the purposes of Part X of the Act.

152D Capital gains regarded as subject to tax

(1) In this regulation:

capital gains means gains or profits or other amounts of a capital nature.

roll-over relief , in relation to a particular tax accounting period in relation to a listed country, means the deferral of tax liability in the tax accounting period under a tax law of the listed country because of a circumstance specified in regulation 152E.

(2) For section 324 of the Act, if:

(a) capital gains that are derived by an entity are not subject to tax in a listed country in a particular tax accounting period; and

(b) apart from the availability of roll-over relief, the capital gains would have been subject to tax in the listed country in the tax accounting period;

the capital gains are to be treated as if they were subject to tax in the listed country in the tax accounting period.

152E Circumstances specified for the definition of roll-over relief in regulation 152D

For the definition of roll-over relief in subregulation 152D (1), each of the following circumstances is specified:

(a) an entity:

(i) is taken to have disposed of all or part of a CGT asset because of an act, transaction or event as a result of which the entity has received an amount of money or a replacement CGT asset:

(A) by way of compensation for the compulsory acquisition, or for the loss or destruction, of the original CGT asset; or

(B) under a policy of insurance against the risk of loss or destruction of the original CGT asset; and

(ii) after receiving an amount of money mentioned in subparagraph (i), in order to achieve a deferral of tax liability under the tax law of the listed country, is required:

(A) to incur expenditure in acquiring a CGT asset in place of the original CGT asset; or

(B) to incur expenditure of a capital nature in repairing or restoring the original CGT asset;

(b) a company disposes of a CGT asset to another company, and the transferee is a member of the same wholly-owned group as the transferor;

(c) a company redeems or cancels all the shares of a particular class in the company, and:

(i) an entity holds shares of that class in the company; and

(ii) the company issues to the entity other shares in the company in substitution for the redeemed or cancelled shares; and

(iii) the market value of the new shares immediately after they were issued is not less than the market value of the redeemed or cancelled shares immediately before the redemption or cancellation; and

(iv) the entity did not receive any consideration (other than the new shares) in respect of the redemption or cancellation;

(d) an entity owns an option to acquire shares in a company or a right, issued by a company, to acquire shares in the company or to acquire an option to acquire shares in the company, and:

(i) any of the shares:

(A) are consolidated and divided into new shares of a larger amount; or

(B) are subdivided into shares of a smaller amount; and

(ii) as a result of the consolidation or subdivision:

(A) the original option is cancelled; or

(B) the original right is cancelled; and

(iii) the company issues to the entity:

(A) another option relating to the new shares in substitution for the original option; or

(B) another right relating to the new shares, in substitution for the original right; and

(iv) the market value of the new option or the new right, immediately after it was issued, is not less than the market value of the original option or original right immediately before its cancellation; and

(v) the entity did not receive any consideration in respect of the cancellation, other than the new option or right.