INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 21 - Miscellaneous  

SECTION 160ZZU   KEEPING OF RECORDS  

160ZZU(1)   [Records to be kept]  

A person who has at any time after 19 September 1985 owned an asset other than an excepted asset shall keep such records in the English language as are necessary to enable the ready ascertainment of:

(a) the date on which the person acquired the asset;

(b) if the asset has not been disposed of:

(i) in any case - any amount that would, if the asset were disposed of, form part of the cost base to the person in respect of the asset; and

(ii) if the asset is a share whose market value has suffered a material decrease under an arrangement where the requirements of section 160ZZRL (which deals with share value shifting arrangements) are satisfied:

(A) the essential features of the arrangement; and

(B) the dates of the decreases in market value of all shares involved in share value shifts under the arrangement; and

(C) the amounts of the decreases in market value of all shares involved in share value shifts under the arrangement; and

(D) the amounts of the increases in market value of all shares involved in share value shifts under the arrangement and of any other shares covered by paragraph 160ZZRO(3)(b) ; and

(E) any amount that would, if the share were disposed of at the time of the decrease in market value, form part of the cost base to the person in respect of the asset; and

(c) if the asset has been disposed of by the person:

(i) the date of disposal;

(ii) any amount that formed part of the cost base to the person in respect of the asset; and

(iii) the consideration in respect of the disposal.

Penalty: $3,000.

160ZZU(2)   [Excepted asset]  

For the purpose of the application of subsection (1) in relation to a person, an asset is an excepted asset if:

(a) where the asset has been disposed of by the person - this Part did not apply in respect of the disposal; or

(b) where the asset has not been disposed of by the person - this Part would not, in the event of the disposal of the asset, apply in respect of the disposal.

160ZZU(3)   [Records of company group relationship with transferor]  

A transferee (within the meaning of section 160ZZO ) who acquires an asset (other than an excepted asset) as a result of a disposal mentioned in paragraph 160ZZO(1)(a) to which section 160ZZO applies (assuming that paragraph 160ZZO(1)(bb) had not been enacted), must keep such records in the English language as are necessary to enable the ready ascertainment of:

(a) the acts, transactions and other circumstances (including the identity of the transferor concerned) that resulted in section 160ZZO applying in relation to the disposal (assuming that paragraph 160ZZO(1)(bb) had not been enacted); and

(b) the transferee's status as a subsidiary (within the meaning of section 160ZZOA ) in relation to the ultimate holding company (within the meaning of section 160ZZOA ) in respect of the disposal at a time before the earliest of the following:

(i) the break-up time mentioned in section 160ZZOA ;

(ia) if section 160ZZO does not actually apply to the disposal but would have applied if paragraph 160ZZO(1)(bb) had not been enacted - the time when the derived asset mentioned in that paragraph was acquired by the transferee;

(ii) the time when the asset was disposed of by the transferee; and

(c) the earliest of the times mentioned in paragraph (b) of this subsection.

Penalty: $3,000.

160ZZU(3A)    

160ZZU(4)   [Records not required]  

Paragraphs (3)(b) and (c) do not require a person to keep a record of information if the person did not know, and made all reasonable efforts to obtain, the information.

160ZZU(5)   [Excepted asset in subsec (3)]  

For the purpose of the application of subsection (3) in relation to a person, an asset is an excepted asset if this Part would not, in the event of the disposal of the asset by the person, apply in respect of the disposal.

160ZZU(6)   [Period for retention of records]  

A person who has possession of any records kept under subsection (1) or (3) must retain those records, an asset register entry for those records, or a combination of both, containing all the information required to be contained in those records under that subsection, until:

(a) if subsection (1) applies - the end of 5 years after the asset to which the records relate was disposed of by the person; or

(b) if subsection (3) applies - the end of 5 years after the earliest of the times mentioned in paragraph (3)(b);

(c) (Omitted by No 17 of 1993).

Penalty: $3,000.

Note:

Asset register entry is defined in subsection (9).

160ZZU(6A)   Mergers of qualifying superannuation funds - record-keeping requirements for transferor.  

If section 160ZZPI applies to the disposal of an asset by a transferor (within the meaning of that section) to a transferee (within the meaning of that section), the transferor must keep such records in the English language as are necessary to establish that that section applies to the disposal, including:

(a) records relating to the identity of the transferee; and

(b) the election under paragraph 160ZZPI(1)(c) .

160ZZU(6B)   Mergers of qualifying superannuation funds - record-keeping requirements for transferee.  

If subsection 160ZZPI(3) or (4) applies to a subsequent disposal of the asset by the transferee, the transferee must keep such records in the English language as are necessary to establish that the subsection applies to the subsequent disposal, including:

(a) records relating to the identity of the transferor; and

(b) a copy of the election under paragraph 160ZZPI(1)(c) .

160ZZU(6C)   Period for retention of records under subsection (6A) or (6B).  

A person who has possession of any records kept under subsection (6A) or (6B) must retain the records, an asset register entry for the records, or a combination of both, containing all the information required to be contained in the records under that subsection, until:

(a) if subsection (6A) applies - the end of 5 years after the end of the merger period (within the meaning of section 160ZZPIA ); or

(b) if subsection (6B) applies - the end of 5 years after the subsequent disposal of the asset by the transferee.

Note:

Asset register entry is defined in subsection (9).

160ZZU(6D)   Penalty.  

A person who, without reasonable excuse, contravenes subsection (6A), (6B) or (6C) commits an offence punishable on conviction by a penalty not exceeding 30 penalty units.

160ZZU(7)   [Retention of records not required]  

Subsection (6) or (6C) does not require a person to retain records where:

(a) the Commissioner has notified the person that retention of the records is not required; or

(b) the person is a company that has gone into liquidation and been finally dissolved.

160ZZU(8)   [Sec 262A(4) and (5) not applicable]  

Subsections 262A(4) and (5) do not apply in relation to records kept under this section.

160ZZU(9)   [Asset register entry]  

If:

(a) a person (the record keeper ) is required by subsection (1), (3), (6A) or (6B) to keep records containing particular information; and

(b) the record keeper makes an entry in a register, in English, setting out some or all of the information; and

(c) a registered tax agent (within the meaning of section 251A ) or other person approved by the Commissioner certifies in the register that the information entered is information from those records (so long as the person certifying is not the record keeper); and

(d) the record keeper retains the records that contain the information entered for at least 5 years after the entry is certified;

the entry is an asset register entry for those records.