Supplementary Explanatory Memorandum(Circulated by authority of the Minister for Finance, Senator the Hon. Peter Walsh)
The revenue effect of the first amendment cannot be estimated with any degree of accuracy. It will, however, prevent the revenue loss that would arise from early balancing companies channelling dividends through later balancing companies in circumstances that allow imputation credits calculated at the 39 per cent rate to be credited at the 49 per cent rate.
The nature of the proposal to amend the refund provisions of the sales tax law was such that a reliable estimate of the potential revenue effect could not be made. It is also not possible to estimate the financial impact of not proceeding with the amendment.