Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
Chapter 5 Technical amendment
5.1 Schedule 5 to this Bill will make a minor technical amendment to the Income Tax Assessment Act 1997 (ITAA 1997) to remove an incorrect reference to 'foreign public official' in paragraph 26-53(2)(c).
5.2 The purpose of the amendments is to remove a reference to 'foreign' public official in the section dealing with bribes to public officials.
5.3 The amendments will apply from the date of Royal Assent of Taxation Laws Amendment Act (No. 2) 2000 .
5.4 Item 1 removes a reference to 'foreign' in paragraph 26-53(2)(c) of the ITAA 1997. Measures relating to the denial of tax deductibility of bribes to foreign public officials were contained in Taxation Laws Amendment Bill (No. 8) 1999.
5.5A Senate amendment to these measures introduced a new section which extended the non-deductibility of bribes to Australian public officials. New section 26-53 , mirrored, in construction, section 26-52, with references to 'foreign public official' replaced by 'public official'. In paragraph 26-53(2)(c), however, a reference to 'foreign public official' was not replaced. Consequently, an amendment is needed to remove the incorrect reference to 'foreign'.