Taxation Laws Amendment Act (No. 2) 1994 (82 of 1994)
Part 3 AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Division 2 Amendments relating to accruals assessability of certain securities
SubDivision B Amendments of Division 16E of Part III
13 Tax treatment of issuer of a qualifying security
Section 159GT of the Principal Act is amended:
(a) by omitting subsection (1) and substituting the following subsections:
"(1) Subsections (1A) and (1B) apply if a taxpayer is an issuer of a qualifying security to which this section applies during a period (the 'issuer period') comprising the whole or part of a year of income.
"(1A) If, on the assumptions in subsection (1C), an amount would be included in the taxpayer's assessable income of the year of income in respect of the issuer period, then, subject to this section, the taxpayer is entitled to a deduction in his or her assessment for the year of income equal to that amount.
"(1B) If, on the assumptions in subsection (1C), a deduction would be allowable in the taxpayer's assessment for the year of income, then an amount equal to the deduction is included in the taxpayer's assessable income of the year of income.
"(1C) For the purposes of subsections (1A) and (1B), the assumptions are that:
(a) the security was issued to the taxpayer (rather than the taxpayer being the issuer of the security); and
(b) the taxpayer held the security during the whole of the issuer period; and
(c) the taxpayer did not transfer the security at the end of the issuer period; and
(d) sections 159GW, 159GX and 159GY were not enacted.";