House of Representatives

Tax Laws Amendment (2007 Measures No. 3) Bill 2007

Tax Laws Amendment (2007 Measures No. 3) Act 2007

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello MP)

Index

Schedule 1: Distributions to entities connected with a private company and related amendments

Bill reference Paragraph number
Item 1, section 109B of the ITAA 1936 1.14
Items 2 and 3, note under subsections 109C(3A) and 109D(4) of the ITAA 1936 1.17
Items 4, 5 and 9, paragraph 109E(1)(c) and subsection 109E(2) of the ITAA 1936 1.19 and 1.20
Items 6, 10 and 12, subsections 109E(3A) and (3B), 109N(3A) and (3B) and 109R(6) of the ITAA 1936 1.29
Items 7 and 9, subsections 109G(3A) and (3B) of the ITAA 1936 1.23
Items 8, 34 and 35, subsection 109Y(2), paragraphs 109G(3)(b), 160AEA(1)(d) and 268-40(5)(b) in Schedule 2F of the ITAA 1936 and paragraph 165-60(5)(b), subparagraph 202-45(g)(ii) and section 10-5 of the ITAA 1997 1.77
Items 10 and 12, subsections 109N(3C) and (3D) and 109R(7) of the ITAA 1936 1.30
Item 12, subsection 109R(5) of the ITAA 1936 1.27
Item 13, section 109RB of the ITAA 1936 1.31
Item 13, paragraph 109RB(1)(b) of the ITAA 1936 1.32 and 1.33
Item 13, subsection 109RB(3) of the ITAA 1936 1.35
Item 13, subsection 109RB(4) of the ITAA 1936 1.38
Item 13, subsection 109RB(5) of the ITAA 1936 1.39
Items 13 and 28, subsection 109RB(6) of the ITAA 1936 and subparagraph 202-45(g)(i) of the ITAA 1997 1.41
Items 13 and 28, section 109RC of the ITAA 1936 and subparagraph 202-45(g)(i) of the ITAA 1997 1.45
Item 13, subsection 109RC(3) of the ITAA 1936 1.46
Item 13, section 109RD of the ITAA 1936 1.50
Item 14, subsection 109UA(5) 1.54
Item 15, subsection 109X(4) 1.55
Items 16 and 17, subsection 109Y(2) of the ITAA 1936 1.57
Item 18, subsection 109Y(2) of the ITAA 1936 1.22
Items 19 and 20, subsection 109ZC(2) of the ITAA 1936 1.58
Item 23, definition of 'family law obligation' in section 109ZD of the ITAA 1936 1.49
Item 29, section 205-30 of the ITAA 1997 1.13
Items 30 to 32, subsection 136(1) paragraph (s) of the definition of 'fringe benefit' of the Fringe Benefits Tax Assessment Act 1986 1.61
Items 30 to 32, definition of 'fringe benefit' in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 and the note in subsection 16(1) 1.62
Item 33 1.65
Items 34 to 36, subsection 109Y(2) of the ITAA 1936 1.66
Item 42, subitems 43(4) and (6), subsection 214-60(1A) of the ITAA 1997 1.75
Item 42, subsection 214-60(1A) of the ITAA 1997 1.68
Subitem 43(1) 1.69
Subitem 43(2) 1.70
Subitem 43(3) 1.71
Subitem 43(4) 1.42, 1.72, 1.73 and 1.74
Subitem 43(5) 1.76

Schedule 2: Transitional excess non-concessional contributions

Bill reference Paragraph number
Item 1, paragraph 292-80(3)(b) 2.12
Item 2, subsection 292-80(7) 2.13
Item 2, subsection 292-80(8) 2.14

Schedule 3: Capital gains of testamentary trusts

Bill reference Paragraph number
Item 1, paragraph 103-25(3)(aa) 3.22
Item 2, paragraph 115-230(1)(a) 3.10
Item 2, paragraph 115-230(1)(b) 3.11
Item 2, paragraph 115-230(2)(a) 3.12
Item 2, paragraph 115-230(2)(b) 3.13
Item 2, subsection 115-230(3) 3.15
Item 2, subsection 115-230(4) 3.25
Item 2, paragraph 115-230(4)(a) 3.23
Item 2, paragraph 115-230(4)(b) 3.24
Item 2, paragraph 115-230(5)(a) 3.20
Item 2, paragraph 115-230(5)(b) 3.21
Item 3, subsection (1) 3.28
Item 3, subsection (2) 3.29
Item 3, subsection (3) 3.30
Item 4 3.33
Item 4, paragraphs (a) and (b) 3.32

Schedule 4: Superannuation of deceased military and police

Bill reference Paragraph number
Item 1 4.26
Item 2, subsection 302-195(2) 4.14
Item 2, subsection 302-195(3) 4.15
Item 3, definition of 'died in the line of duty' in subsection 995-1(1) 4.27
Item 4 4.25
Item 5 4.22

Schedule 5: Thin capitalisation

Bill reference Paragraph number
Item 1, subsection 820-45(1) 5.10

Schedule 6: Repeal of dividend tainting rules

Bill reference Paragraph number
Item 1 6.7
Item 2, paragraph 177EA(17)(ga) of the ITAA 1936 6.15
Items 3, 5, 6 and 7, subsections 197-50(1), 375-872(4) and 975-300(3) 6.12
Item 4, paragraph 202-45(e) 6.9
Item 8 6.16

Schedule 7: Interest withholding tax

Bill reference Paragraph number
Item 1 7.26, 7.27, 7.30, 7.31
Items 1 to 3 7.58
Item 2 7.28
Item 3 7.29
Item 4 7.53, 7.54
Item 5 7.57
Item 6 7.34
Items 7 and 8 7.39, 7.42
Item 8 7.33, 7.41, 7.43, 7.45, 7.47, 7.50, 7.51, 7.52
Item 9 7.60, 7.62
Item 10 7.64
Items 11 and 12 7.65
Item 13 7.66
Items 14 and 15 7.63
Item 16 7.70, 7.74, 7.77

Schedule 8: Forestry managed investment schemes

Chapter 8

Bill reference Paragraph number
Item 2, section 394-5 8.20
Item 2, sections 394-10 and 394-40 8.25
Item 2, paragraph 394-10(1)(a) 8.21
Item 2, paragraph 394-10(1)(b) 8.21
Item 2, paragraph 394-10(1)(c) 8.21
Item 2, paragraph 394-10(1)(c) and subsection 394-35(1) 8.38
Item 2, paragraph 394-10(1)(e) 8.21
Item 2, paragraph 394-10(1)(f) and subsection 394-10(4) 8.21
Item 2, subsection 394-10(2) 8.22
Item 2, subsection 394-10(3) 8.23
Item 2, subsections 394-10(5) and (6) 8.21
Item 2, subsection 394-10(7) 8.21
Item 2, subsection 394-15(1) 8.21
Item 2, section 394-20 8.24
Item 2, section 394-25 8.33
Item 2, subsection 394-25(2) 8.34
Item 2, section 394-35 8.36
Item 2, subsections 394-35(1) to (3) 8.46
Item 2, subsection 394-35(2) 8.41
Item 2, subsection 394-35(3) 8.42
Item 2, subsection 394-35(4) 8.47
Item 2, subsection 394-35(5) 8.48
Item 2, subsection 394-35(6) 8.43
Item 2, subsection 394-35(7) 8.49
Item 2, subsection 394-35(8) 8.52
Item 2, subsection 394-45(1) 8.57
Item 2, subsection 394-45(2) 8.60
Item 2, subsection 394-45(3) 8.64
Item 2, subsection 394-45(4) 8.31, 8.66
Item 3, section 394-5 of the Taxation Administration Act 1953 (TAA 1953) 8.69
Item 3, section 394-10 of the TAA 1953 8.70
Items 4 to 6 and 10B, paragraphs 82KH(1)(pa), 82KH(1G)(pa) and 82KH(1L)(p) of the ITAA 1936 8.78
Item 7, subsection 262A(2AAA) of the ITAA 1936 8.72
Item 7, subsections 262A(2AAB) and (2AAC) of the ITAA 1936 8.73
Item 12, section 10-5 8.79
Item 13, section 10-5 8.80
Item 14, section 12-5 8.81
Item 15, section 15-46 8.68
Items 17 to 25, subsection 995-1 8.82
Item 26, subsection 394-220(1) and (2) 8.75
Item 26, subsection 394-200(3) and (4) 8.76

Schedule 8: Forestry managed investment schemes

Chapter 9

Item 1, sections 82KZMGA and 82KZMGB 9.59
Item 1, section 82KZMGB 9.60
Item 1, paragraph 82KZMGB(1)(d) 9.61
Item 2, subsection 394-10(1) 9.41
Item 2, subsection 394-10(3) 9.37
Item 2, subsections 394-10(3) and 394-15(4) and (5) 9.39
Item 2, subsection 394-10(5) 9.32
Item 2, subsection 394-10(6) 9.35
Item 2, subsection 394-15(5) 9.23
Item 2, section 394-25 9.20, 9.26
Item 2, subparagraph 394-25(1)(b)(ii) and subsection 394-25(2) 9.36
Item 2, subsection 394-25(2) 9.21, 9.27
Item 2, paragraph 394-25(2)(b) 9.28
Item 2, subsection 394-25(3) 9.29
Item 2, paragraph 394-30(1)(c) 9.43
Item 2, subsections 394-30(2) to (5) 9.55
Item 2, subsections 394-30(2) to (6) 9.53
Item 2, paragraph 394-30(2)(a) 9.48
Item 2, paragraph 394-30(2)(b) and subsections 394-30(3) to (5) 9.47
Item 2, subsection 394-30(5) 9.55
Item 2, subsection 394-30(6) 9.55
Item 2, subsections 394-30(7) and (8) 9.50
Item 2, subsection 394-30(9) 9.51
Item 16, section 112-97, item 22A 9.63
Item 26, section 394-220 9.62

Schedule 9: Non-resident trustee beneficiaries

Bill reference Paragraph number
Item 1, subsection 98(2A) 10.15
Item 1, subsections 98(2A) and (3) 10.16
Item 1, subparagraphs 98(2A)(a)(iii) and (iv) 10.27
Item 1, subsection 98(3) 10.15, 10.16
Item 1, paragraph 98(3)(a) 10.30
Item 1, subsection 98(4) 10.17
Items 1 and 27 to 29, paragraph 98(3)(b), and sections 5 and 28 of the Income Tax Rates Act 1986 10.30
Items 1 and 27 to 29, subsection 98(4) and sections 5 and 28 of the Income Tax Rates Act 1986 10.31
Items 2 and 3, subsection 98A(1) and paragraph 98A(2)(a) 10.58
Item 4, subsection 98A(3) 10.36
Item 4, subsection 98A(4) 10.37
Items 4, 9 and 10, subsection 98A(4) and subsection 100(1), note 2 10.41
Item 5, section 98B 10.42
Item 5, paragraph 98B(2)(c) 10.42
Item 5, subsection 98B(3) 10.44
Item 5, subsection 98B(4) 10.45
Items 6 and 7, section 99B 10.59
Item 8, section 99E 10.28
Item 11, subsection 100(1B) 10.40
Item 12, subsection 100(3) 10.43
Item 14, section 12-5 of the ITAA 1997 10.57
Item 15, section 13-1 of the ITAA 1997 10.60
Item 16, subparagraphs 115-215(2)(b)(ii) and (iii) of the ITAA 1997 10.47
Items 17 to 20, section 115-220 10.61
Item 21, section 115-222 of the ITAA 1997 10.23
Item 22, subparagraph 207-50(3)(b)(ii) 10.63
Item 23, subsection 802-17(1) of the ITAA 1997 10.20
Item 23, subsection 802-17(3) of the ITAA 1997 10.19
Items 24 to 26, subsections 855-40(3) and (4) of the ITAA 1997 10.53
Item 26 10.55
Items 27 and 28, section 5 of the Income Tax Rates Act 1986 10.62
Item 30 10.49
Item 31 10.52
Items 32 and 33 10.50
Item 34 10.55

Schedule 10: Distributions to foreign residents from managed investment trusts

Bill reference Paragraph number
Item 1, subsection 12-385(2) 11.33
Item 1, subsection 12-390(1) 11.48
Item 1, subsection 12-390(2) 11.49
Item 1, item 1 in the table in paragraph 12-395(1)(b) 11.13
Item 1, item 2 in the table in paragraph 12-395(1)(b) 11.14
Item 1, item 3 in the table in paragraph 12-395(1)(b) and subsection 12-395(2) 11.15
Item 1, subsection 12-395(3) 11.17
Item 1, subsection 12-395(4) 11.19
Item 1, subsection 12-395(5) 11.20
Item 1, paragraph 12-395(5)(b) 11.21
Item 1, subsection 12-400(1) 11.22
Item 1, step 1 in the method statement in subsection 12-400(2) 11.23
Item 1, step 2 in the method statement in subsection 12-400(1), subsection 12-400(3) 11.25
Item 1, paragraph (b) of step 2 in the method statement in subsection 12-400(2) 11.27
Item 1, step 3 in the method statement in subsection 12-400(2) 11.29
Item 1, subsection 12-400(4) 11.31
Item 1, subsection 12-400(5) 11.32
Item 1, paragraph 12-405(1)(a) 11.37
Item 1, paragraph 12-405(1)(b) 11.37
Item 1, paragraph 12-405(1)(c) 11.40
Item 1, paragraph 12-405(1)(d) and subsection 12-405(2) 11.36
Item 1, section 12-410 11.33
Item 1, subsection 12-415(1) 11.43
Item 1, subsection 12-415(2) 11.41
Item 1, subsection 12-415(3) 11.45
Item 1, paragraph 12-420(2)(a) 11.46
Item 1, paragraph 12-420(2)(b) 11.47
Item 2, section 18-50 11.52 and 11.53
Item 2, subsection 18-50(4) 11.55
Item 2, subsections 18-50(5) and (6) 11.54
Item 6, section 99F of the ITAA 1936 11.59
Item 6, section 99G of the ITAA 1936 11.60, 11.61, 11.62
Item 6, section 99H of the ITAA 1936 11.63
Item 7, subsection 100(1C) of the ITAA 1936 11.64
Item 8 11.65
Item 9 11.66
Item 14 11.67
Item 15 11.68
Items 16 to 18 11.69
Item 19, subsection 16-153(4) 11.70
Items 20 to 24 11.71
Items 25 and 26 11.72
Items 27 and 28, subsections 18-15(3) and 18-25(9) 11.56
Items 29 to 31 11.73
Item 32 11.58


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