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:
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 |