INCOME TAX RATES ACT 1986 (ARCHIVE)

SCHEDULE 9  

Subsection 12(5)

RATES OF TAX BY REFERENCE TO A NOTIONAL INCOME

PART II - NON-RESIDENT TAXPAYERS  

1.    
Subject to clause 2, the rates of tax on the taxable income of a non-resident taxpayer deriving a notional income as specified by section 59AB or 86 of the Assessment Act or the former section 42-300 of the Income Tax Assessment Act 1997 are as follows:

(a) 38% for the amount (if any) of the EC part of the taxable income that does not exceed the difference between:

(i) the amount that would have been the taxed element of the retained amount of the post-June 83 component of the ETP if the amount of the excessive component of the ETP had been nil; and

(ii) the taxed element of the retained amount of the post-June 83 component of the ETP;

worked out disregarding section 27AAA of the Assessment Act;

(aa) 47% for the remainder (if any) of the EC part of the taxable income;

(b) for every $1 of the ordinary taxable income - the amount worked out using the formula:

Tax at ordinary rates on non-EC notional income Number of dollars in the non-EC notional income

where:

``Tax at ordinary rates on non-EC notional income'' means the tax that would be payable under clause 1 of Part II of Schedule 7 on an ordinary taxable income equal to the non-EC notional income;

``Number of dollars in the non-EC notional income'' means the number of whole dollars in the non-EC notional income;

In this clause, ``non-EC notional income'' means the amount that would have been the notional income as specified by section 59AB or 86 of the Assessment Act or the former section 42-300 of the Income Tax Assessment Act 1997 if that notional income had been calculated by reference to ordinary taxable income instead of by reference to taxable income.