Income Tax Assessment Act 1936
Sections and provisions with full text and the judgments that cite each one.
Section 109Z — Characteristics of dividends taken to be paid under this Division
If a private company is taken under this Division to have paid a dividend to an entity, the dividend is taken for the purposes of this Act to be paid: (a) to the entity as a shareholder in the…
Section 117 — Co-operative companies
(1) In this Division, co-operative company means a company, not being a friendly society dispensary, the rules of which limit the number of shares which may be held by, or by and on behalf of, any…
Section 118 — Company not co-operative if less than 90% of business with members
If, in the ordinary course of business of a company in the year of income, the value of commodities and animals disposed of to, or acquired from, its shareholders by the company, or the amount of its…
Section 119 — Sums received to be taxed
(1) The assessable income of a co-operative company shall include all sums received by it, whether from shareholders or from other persons, for the storage, marketing, packing or processing of…
Section 120 — Deductions allowable to co-operative company
(1) So much of the assessable income of a co-operative company as: (a) is distributed among its shareholders as rebates or bonuses based on business done by shareholders with the company; (b) is…
Section 121 — Mutual insurance associations
(1) An association of persons formed for the purpose of insuring those persons against loss, damage or risk of any kind is taken, for the purposes of this Act, to be a company carrying on the…
Section 121AA — What this Division is about
Basically, if an insurance company demutualises and its policyholders or members dispose of their listed shares in the company, for tax purposes the acquisition cost of the shares is based on the…
Section 121AEA — Replacement of policyholders by persons exercising certain rights
If, as a result of the exercise of any power under the articles of association of an insurance company, persons are entitled to exercise rights in place of policyholders, then, to the extent that the…
Section 121DA — Meaning of expressions relevant to investment activity
Portfolio investment (1) If, under a contract or trust instrument, an OBU manages one or more investments as broker an agent or custodian for, or trustee for the benefit of, a non-resident, the…
Section 121EA — OBU requirement
For a thing done by an OBU to be an OB activity, it is necessary that, when the thing is done: (a) the OBU is a resident and the thing is not done in carrying on business in a country outside…
Section 121EAA — Activities recorded in domestic books not OB activities
(1) An OBU may, when it does a thing that would otherwise be an OB activity of the OBU, choose to have the thing not be an OB activity. Accounting records (2) The OBU recording the thing in the OBU’s…
Section 121EDA — Meaning of OB income
OB income (1) Subject to subsections (2) to (5), the OB income of an OBU of a year of income is so much of the OBU’s ordinary income and statutory income of the year of income as is: (a) derived from…
Section 121ELA — Exemption of income etc. of overseas charitable institutions
Investment with OBU (1) Income, derived by an overseas charitable institution, is exempt to the extent that it is: (a) a payment or outgoing from an OBU as part of the OB activities of the OBU; or…
Section 121AB — Insurance company definitions
(1) A mutual insurance company is an insurance company: (a) whose profits are divisible only among its policyholders; or (b) that satisfies all of the following conditions: (i) it is limited by…
Section 121B — Simplified outline
Scope of section (1) The following is a simplified outline of the Division. Main concepts (2) Subdivision B sets out the concepts used in the Division, the most important being: (a) OB activity…
Section 121DB — Meaning of OB eligible contract activity
An OB eligible contract activity is entering into an eligible contract (other than a loan contract that is not a securities lending or repurchase arrangement) with: (a) an offshore person; or (b) if…
Section 121EB — Internal financial dealings of an OBU
Permanent establishments treated as separate persons (1) If an OBU consists of: (a) one or more permanent establishments in Australia at or through which the OBU carries on what are OB activities…
Section 121ELB — Adjustment of capital gains and losses from disposal of units in OBU offshore investment trusts
Trust with subsection 121D(6) investment activities (1) If: (a) an OBU is a trustee, or is the central manager and controller, of a unit trust estate; and (b) the only persons who benefit, or are…
Section 121AC — Mutual affiliate company
(1) A mutual affiliate company is a company that satisfies the following conditions: (a) it is limited by guarantee; (b) it is not an insurance company; (c) at least 75% of the policyholders of a…
Section 121C — Interpretation
In this Division: adjusted assessable OB income has the meaning given by subsection 121EE(4). adjusted total assessable income has the meaning given by subsection 121EE(5). allowable OB deduction has…
Section 121DC — Meaning of OB advisory activity
(1) An OB advisory activity is giving investment or other financial advice to an offshore person, including advice about disposing of an investment. (2) Giving advice about the making of a particular…
Section 121EC — Meaning of OBU resident-owner money
Money is OBU resident-owner money of an OBU if it is paid to the OBU by a resident owner of the OBU by way of a subscription for, or a call on, shares in the OBU, except if the shares are redeemable…
Section 121AD — Demutualisation and demutualisation resolution day
(1) A mutual insurance company demutualises if it ceases to be a mutual insurance company: (a) in any case—other than by ceasing to be an insurance company; or (b) if it is a life insurance…
Section 121D — Meaning of OB activity
Kinds of OB activity (1) Each of the following things done by an OBU is an OB activity (offshore banking activity) of the OBU (subject to sections 121EA and 121EAA): (a) a borrowing or lending…
Section 121DD — Meaning of OB leasing activity
(1) An OB leasing activity is leasing activity with an offshore person involving offshore property. (2) Without limiting subsection (1), OB leasing activity includes entering into: (a) any…
Section 121ED — Meaning of trade with a person
A person (the trader) is said to trade with another person in a thing if: (a) the trader, for the purpose of trading in the thing, acquires it on issue from the other person; or (b) the trader, for…
Section 121AE — Demutualisation methods, the policyholder/member group and the listing period
Demutualisation methods 1 to 6 (1) There are 6 methods by which the demutualisation of a mutual insurance company, where a mutual affiliate company is not also demutualised, may be implemented that…
Section 121E — Meaning of offshore person
A reference to an offshore person, in relation to the doing of any thing by an OBU (the first OBU), is a reference to: (a) a non-resident whose involvement in the doing of the thing does not occur in…
Section 121EE — Definitions relating to assessable income of an OBU
Purpose of section (1) This section sets out certain definitions used in this Division that relate to the assessable income of an OBU of a year of income. Assessable OB income (2) The assessable OB…
Section 121AF — Demutualisation method 1
(1) Under demutualisation method 1, in connection with the implementation of the demutualisation: (a) all membership rights in the mutual insurance company are extinguished; and (b) shares (the…
Section 121EF — Definitions relating to allowable deductions of an OBU
Purpose of section (1) This section sets out certain definitions used in this Division relating to allowable deductions of an OBU in relation to a year of income. Allowable OB deduction (2) An…
Section 121F — Interpretation
(1) In this Division, unless the contrary intention appears: agreement means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not…
Section 121AG — Demutualisation method 2
(1) Under demutualisation method 2, in connection with the implementation of the demutualisation: (a) all membership rights in the mutual insurance company are extinguished; and (b) not more than 10…
Section 121G — Diverted income and diverted trust income
(1) Where: (a) a taxpayer, not being a taxpayer in the capacity of a trustee, has acquired property (in this subsection referred to as the relevant property) under a tax avoidance agreement or by…
Section 121AH — Demutualisation method 3
(1) Under demutualisation method 3, in connection with the implementation of the demutualisation: (a) all membership rights in the mutual insurance company are extinguished; and (b) shares in the…
Section 121H — Assessment of diverted income and diverted trust income
(1) A taxpayer, not being a taxpayer in the capacity of a trustee of a trust estate, shall be assessed and is liable to pay tax, at the rate declared by the Parliament for the purposes of this…
Section 121AI — Demutualisation method 4
(1) Under demutualisation method 4, in connection with the implementation of the demutualisation: (a) all membership rights in the mutual insurance company are extinguished; and (b) shares in the…
Section 121AJ — Demutualisation method 5
(1) Under demutualisation method 5, in connection with the implementation of the demutualisation: (a) all membership rights in the mutual insurance company are extinguished; and (b) shares in the…
Section 121EJ — Source of income derived from OB activities
For the purposes of this Act, income of an OBU that is derived from OB activities of the OBU is taken to be derived from a source in Australia.
Section 121J — Ascertainment of diverted income or diverted trust income deemed to be an assessment
The ascertainment of the amount of the diverted income or diverted trust income and of the tax payable thereon shall, for all purposes of this Act be deemed to be an assessment.
Section 121AK — Demutualisation method 6
(1) Under demutualisation method 6, in connection with the implementation of the demutualisation of a life insurance company: (a) all membership rights in the company are extinguished; and (b) the…
Section 121EK — Deemed interest on 90% of certain OBU resident-owner money
Deemed interest (1) If: (a) an owner of an OBU pays an amount of money to the OBU and, because of section 121EC, the amount becomes OBU resident-owner money of the OBU; and (b) the OBU uses, or holds…
Section 121K — Application of International Tax Agreements Act
For the purposes of sections 15 and 16 of the International Tax Agreements Act 1953, any amount that is included in the diverted income or diverted trust income of a taxpayer of a year of income…
Section 121AL — Demutualisation method 7
(1) Under demutualisation method 7, in connection with the implementation of the demutualisation of both a mutual insurance company and a mutual affiliate company: (a) all membership rights in both…
Section 121EL — Exemption of income etc. of OBU offshore investment trusts
(1) If: (a) an OBU is a trustee, or is the central manager and controller, of a trust estate; and (b) the only persons who benefit, or are capable (whether by the exercise of a power of appointment…
Section 121L — Division applies notwithstanding exemption under other laws
This Division has effect notwithstanding anything contained in any law of the Commonwealth other than this Act.
Section 121AM — Embedded value of a mutual life insurance company
(1) The embedded value of a mutual life insurance company that demutualises using a demutualisation method is, in accordance with this section, the sum of its existing business value and its adjusted…
Section 121AN — Net tangible asset value of a general insurance company or mutual affiliate company
(1) The net tangible asset value of a general insurance company, or a mutual affiliate company, that demutualises using a demutualisation method is, in accordance with this section: (a) the amount of…
Section 121AO — Treasury bond rate, capital reserve adequacy level, eligible actuary and security
Treasury bond rate (1) The Treasury bond rate for the applicable accounting day in respect of bonds with a particular term is: (a) if any Treasury bonds with that term were issued on the applicable…
Section 121AP — Subsidiary and wholly-owned subsidiary
Subsidiary (1) A company (the test company) is a subsidiary of another company (the holding company) if at least half of the shares in the test company are beneficially owned by: (a) the holding…