House of Representatives

New Business Tax System (Consolidation and Other Measures) (No. 2) Bill 2002

New Business Tax System (Venture Capital Deficit Tax) Bill 2003

New Business Tax System (Venture Capital Deficit Tax) Act 2003

Corrections to the Explanatory Memorandum

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

Chapter 1 - Corrections to the explanatory memorandum

Chapter 5 - Cost setting rules - additional rules

1.1 In paragraph 5.56 delete 'and 705-160' (opening sentence) and substitute with 'and 705-230'.

Chapter 9 - Consolidation: imputation rules

1.2 Delete 'Schedule 9' (wherever occurring) and substitute 'Schedule 5' in the paragraphs, tables, examples and references throughout Chapter 9.

Chapter 13 - Simplified imputation system

1.3 At the end of paragraph 13.9 add the following reference:

[Schedule 27, item 3, Division 210]

1.4 After paragraph 13.10 add the following heading and paragraph:

Venture Capital Deficit Tax

13.10A The New Business Tax System (Venture Capital Deficit Tax) Bill 2002 imposes venture capital deficit tax where an entity has a venture capital deficit at either the end of an income year or immediately before it ceases to be a PDF. The amount of venture capital deficit tax is the amount of the venture capital deficit either at the end of the income year or immediately before it ceases to be a PDF. [Clause 5 of the New Business Tax System (Venture Capital Deficit Tax) Bill 2002]

Index

1.5 Amend the index by inserting the following header and table before 'Schedule 6: Consolidation: life insurance companies':

Schedule 5: Consolidation: imputation rules

Bill reference Paragraph number
Item 1, subsection 177EB(11) 9.55
Item 2, section 709-90 9.54
Item 4, section 709-150 9.16
Item 4, subsection 709-155(1) 9.18
Item 4, subsection 709-155(2) 9.19
Item 4, subsection 709-155(3) 9.20
Item 4, subsection 709-155(4) 9.21
Item 4, section 709-160 9.23
Item 4, subsection 709-160(2) 9.25, 9.26
Item 4, subsection 709-160(2), item 1 in the table Table 9.1
Item 4, subsection 709-160(2), item 2 in the table Table 9.1
Item 4, subsection 709-160(2), item 3 in the table Table 9.1
Item 4, subsection 709-160(2), item 4 in the table Table 9.1
Item 4, section 709-165 9.28
Item 4, subsection 709-165(2) 9.29, 9.30, 9.31, 9.32
Item 4, subsection 709-165(2), item 1 in the table Table 9.1
Item 4, subsection 709-165(2), item 2 in the table Table 9.1
Item 4, subsection 709-165(2), item 3 in the table Table 9.1
Item 4, subsection 709-165(2), item 4 in the table Table 9.1
Item 4, subsection 709-165(2), item 5 in the table Table 9.1
Item 4, section 709-170 9.34, Table 9.1
Item 4, subsections 709-175(1) and (2) 9.36
Item 4, subsection 709-175(2) 9.37, 9.38
Item 4, subsection 709-175(2), item 1 in the table Table 9.1
Item 4, subsection 709-175(2), item 2 in the table Table 9.1
Item 4, subsections 709-175(3) and (4) 9.40
Item 4, subsection 709-175(4) 9.41, 9.42, 9.43
Item 4, subsection 709-175(4), item 1 in the table Table 9.1
Item 4, subsection 709-175(4), item 2 in the table Table 9.1
Item 4, subsection 709-175(4), item 3 in the table Table 9.1
Item 4, subsection 709-175(4), item 4 in the table Table 9.1
Item 4, subsection 709-175(5) 9.44, Table 9.1
Item 5, section 709-90 9.47
Item 5, section 719-425 9.48
Item 5, subsection 719-430(1) 9.49
Item 5, paragraph 719-430(2)(a) 9.50
Item 5, paragraph 719-430(2)(b) 9.50
Item 5, paragraph 719-430(2)(c) 9.50
Item 5, subsection 719-435(1) 9.52
Item 5, subsection 719-435(2) 9.53

1.6 Further amend the index by replacing the header and table entitled 'Schedule 9: Consolidation: foreign dividend accounts' with the following:

Schedule 9: Consolidation: foreign dividend accounts

Bill reference Paragraph number
Item 1, Subdivision 717-J 7.14
Item 1, section 717-510 7.15
Item 1, subsection 717-520(2) 7.32, 7.33
Item 1, paragraph 717-510(2)(a) 7.17
Item 1, paragraph 717-510(2)(b) 7.17
Item 1, subsection 717-510(3) 7.18
Item 1, subsection 717-510(4) 7.21
Item 1, subparagraph 717-510(4)(a)(ii) 7.22
Item 1, section 717-515 7.27, 7.28
Item 1, note 1(b) to section 717-515 7.29
Item 1, note 2 to section 717-515 7.31
Item 1, subsection 717-520(4) 7.33
Item 1, subsection 717-520(6) 7.39, 7.40, 7.41
Item 1, subsection 717-525(2) 7.35
Item 1, subsection 717-525(3) 7.37
Item 1, subsections 717-525(5) and (6) 7.41
Item 1, section 717-530 7.42
Item 2, section 719-900 7.45
Item 2, subsection 719-900(3) 7.47
Item 2, section 719-905 7.49
Items 3 to 11 7.51
Item 12 7.99
Item 13, paragraph 703-75(3)(d) 7.44
Items 15 to 20 7.103
Subitems 12(2) and 12(3) 7.100
Subitems 12(2)(b) and 12(3) 7.101

1.7 Amend the index by inserting the following header and table before 'Schedule 28: Venture capital franking':

Schedule 27: Venture capital franking

Bill reference Paragraph number
Item 3, Division 210 13.9

1.8 Replace the header 'Schedule 28: Venture capital franking' with 'Schedule 28: Machinery provisions for simplified imputation system'.

1.9 At the end of the index add the following:

New Business Tax System (Venture Capital Deficit Tax) Bill 2002

Clauses

Bill reference Paragraph number
Clause 5 13.10A