Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon. John Howard, M.P.)
INCOME TAX (NON-RESIDENTS COMPANIES) BILL 1978
This Bill declares the rate of branch profits tax.
These are formal clauses usual in a measure of this kind.
Clause 5 formally imposes tax, at the rate set out in clause 6, in those situations where tax is payable in accordance with new section 128T of the Assessment Act proposed to be inserted by clause 28 of the Income Tax Assessment Amendment Bill (No. 2) 1978 - see notes on that clause.
This clause fixes the rate of tax imposed by clause 5 at 5 per cent of the reduced taxable income.