ATO National Tax Equivalent Regime

PART 4: NTER GENERAL FEATURES

Commencement date of the NTER

26. The NTER commences on 1 July 2001.

Federal income tax laws

27. The NTER is based on the federal income tax laws, listed at Attachment 4, which are to be strictly observed by NTER entities except to the extent that those laws are expressly altered or modified by this Manual.

Relevant taxation laws

28. The relevant taxation laws are comprised of the federal income tax laws and the modifications thereto set out in this Manual. The relevant taxation laws constitute the administrative and technical rules to be applied in the NTER and to which NTER entities are to comply.

Avoidance of double taxation

29. As a fundamental principle, the NTER will operate in a manner which ensures that:

(i)

NTER entities are not, through the NTER, subjected to actual federal income taxes; and

(ii)

NTER entities are not subjected to double taxation involving an actual federal tax liability and an NTER tax equivalent liability in respect of the same item of income or expenditure.

30. To the extent that an actual income tax liability (that is, non-NTER tax equivalent), or double taxation, occurs then application for relief from the NTER tax equivalent liability should be lodged with the Commissioner. Such applications are to be in writing and provide all the relevant circumstances. The Commissioner will consider any such application received, and will provide relief as appropriate in accordance with this Manual.

Version history

Prior versions of the ATO National Tax Equivalent Regime, from Version 6, can be requested from atolawsupport@ato.gov.au , if required.