INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 16C - Income equalization deposits  

SECTION 159GD   UNRECOUPED DEDUCTION INCLUDED IN ASSESSABLE INCOME ON DEPOSIT BECOMING REPAYABLE  

159GD(1)   [Assessable income]  

Where:

(a) the whole or a part of a current IED scheme deposit or first IED scheme converted deposit has become repayable -

(i) as a result of a declaration made under section 15A or 16 of the Deposits Act in pursuance of a request made under that section; or

(ii) in consequence of a request made under subsection 15A(1) (where subsection 15A(8) applies) or section 17 or 18A of that Act; and

(b) immediately before the request was made there was an unrecouped deduction in respect of the deposit,

there shall be included in the assessable income of the owner of the year of income in which the request was made -

(c) where the whole of the deposit, or so much of the deposit as has not previously become repayable, has become repayable in consequence of the request - an amount equal to the amount of the unrecouped deduction; or

(d) where part only of the deposit, or of so much of the deposit as has not previously become repayable, has become repayable in consequence of the request - the amount by which the amount of the unrecouped deduction exceeds so much of the deposit as has not become repayable.

159GD(1A)   [Where owner ceased to be eligible primary producer]  

Where:

(a) the whole or a part of a current IED scheme deposit has become repayable because of a declaration under section 19 of the Deposits Act as a result of the owner having ceased to be an eligible primary producer after the end of the year of income in which the deposit was made; and

(b) immediately before the owner ceased to be an eligible primary producer, there was an unrecouped deduction in respect of the deposit;

there shall be included in the assessable income of the owner of the year of income in which the owner ceased to be an eligible primary producer an amount equal to the amount of the unrecouped deduction.

159GD(2)   [Death, bankruptcy, winding up]  

Where:

(a) the whole or a part of a current IED scheme deposit or first IED scheme converted deposit has become repayable because of a declaration under section 20 of the Deposits Act as a result of the owner having died, become bankrupt or, in the case of a company that is the owner of a first IED scheme converted deposit, commenced to be wound up, after the end of the year of income in which the deposit was made; and

(b) immediately before the owner died, became bankrupt or commenced to be wound up, as the case may be, there was an unrecouped deduction in respect of the deposit;

there shall be included in the assessable income of the owner of the year of income in which the owner died, became bankrupt or commenced to be wound up an amount equal to the amount of the unrecouped deduction.

159GD(2A)    

159GD(2B)    

159GD(3)   [Sec 101A not applicable]  

Section 101A does not apply in relation to any amount received by the trustee of the estate of a deceased person being an amount consisting of a deposit or a part of a deposit of which the deceased person was the owner that has become repayable.