Taxation Laws Amendment (Infrastructure Borrowings) Act 1994 (163 of 1994)

Part 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

23   Insertion of new section

Before section 159GZZZZE of the Principal Act the following section is inserted in Division 16L of Part III:

Interpretation

"159GZZZZD. In this Division:

'certificate' has the same meaning as in Chapter 3 of the DAA Act;

'DAA' means the Development Allowance Authority appointed under Chapter 4 of the DAA Act;

'DAA Act' means the Development Allowance Authority Act 1992;

'direct infrastructure borrowing' has the same meaning as in Chapter 3 of the DAA Act;

'exemption period', in relation to an infrastructure borrowing, means:

(a) in the case of a direct infrastructure borrowing or an indirect infrastructure borrowing-the period of 15 years beginning at the time of the borrowing; or

(b) in the case of a refinancing infrastructure borrowing-so much of the period that under paragraph (a) is the exemption period in respect of the direct infrastructure borrowing, or the indirect infrastructure borrowing, to which the refinancing infrastructure borrowing relates as remains at the time of the refinancing infrastructure borrowing;

'IB amount', in relation to a taxpayer, means:

(a) a payment of interest, or in the nature of interest, made or liable to be made to the taxpayer under an infrastructure borrowing; or

(b) an amount included in the assessable income of the taxpayer under section 159GQ in relation to an infrastructure borrowing;

'indirect infrastructure borrowing' has the same meaning as in Chapter 3 of the DAA Act;

'infrastructure borrowing' has the same meaning as in Chapter 3 of the DAA Act;

'infrastructure period', in relation to a certificate that is cancelled, means the period from the time of the borrowing to which the certificate applied until the conditions under section 93R of the DAA Act would, if the certificate had not been cancelled, have ceased to apply to the holder;

'refinancing infrastructure borrowing' has the same meaning as in Chapter 3 of the DAA Act;

'tax benefit amount', in relation to a certificate that is cancelled, in relation to a year of income (being the year of income in which the cancellation occurs or any earlier or later year of income), means:

(a) a payment of interest, or in the nature of interest, that, because of paragraph 159GZZZZE(1)(a), is not allowable as a deduction from the assessable income of the year of income of a taxpayer in respect of the borrowing to which the certificate applies; or

(b) an amount that, because of paragraph 159GZZZZE(2)(d), is not allowable as a deduction under section 159GT from the assessable income of the year of income of a taxpayer in respect of the borrowing to which the certificate applies.".