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Taxation Laws Amendment Bill (No. 3) 1997

Supplementary Explanatory Memorandum

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

General outline and financial impact

Gains and losses

Amends the Bill to remove an apparent discretion given to the Commissioner of Taxation in relation to consideration given for the transfer of revenue losses between related companies. The amendment is technical in nature and will ensure the amended provision, which will be included in the Income Tax Assessment Act 1997 (the 1997 Act), operates as a matter of fact, as intended, rather than on the basis of the opinion of the Commissioner.

Date of effect: The amendment will apply to the 1997-98 year of income and later years of income.

Proposal announced: Not previously announced.

Financial impact: There should be no impact on the revenue as the change merely ensures the 1997 Act operates as intended.

Compliance cost impact: There should be no impact on compliance costs as the amendment will not affect the obligations of taxpayers.

Employee share schemes

Amends the employee share scheme provisions of the Income Tax Assessment Act 1936 (the Act) to make two technical amendments.

Date of effect: The amendment to subsection 139CD(5) will apply with effect from the original date of application of Division 13A, and the amendment to paragraph 139GF94)(b) will apply to shares or rights acquired on or after 1 July 1996.

Amendments announced: Assistant Treasurer's Press Release dated 25 July 1997.

Financial impact: The effect on the revenue is expected to be negligible.

Compliance cost impact: Nil.

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