INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 7 - Private companies  

SECTION 105AA   ADDITIONAL PERIOD FOR MAKING SUFFICIENT DISTRIBUTION  

105AA(1)   [Request by company]  

Where -


(a) a notice of assessment in respect of the income of a company of a year of income has not been served on the company before the prescribed time;


(b) before the prescribed time there was served on a company a notice of assessment in respect of the income of the company of a year of income on the basis of which the company would not have had a distributable income in respect of that year of income and after the prescribed time there has been served on the company a notice of amended assessment in respect of that income on the basis of which the company has a distributable income in respect of that year of income;


(c) after the prescribed time there has been served on a company a notice of amended assessment in respect of the income of the company of a year of income on the basis of which the distributable income of the company in respect of that year of income is greater than it would have been on the basis of the assessment before it was amended; or


(d) after the prescribed time there is a determination of credit for a year of income or a determination of credit for a year of income is amended and as a result of the determination or amendment the distributable income of that year of income is greater than it would otherwise have been,

the company may, by writing signed by the public officer of the company, request the Commissioner to determine a further period in which the company may pay dividends for the purpose of making sufficient distribution in relation to that year of income.

105AA(2)   [Granting of request]  

On receipt of the request the Commissioner may grant the request and determine such a further period or he may refuse the request.

105AA(3)   [Advice of decision]  

The Commissioner shall serve, by post, on the company that made the request, a notice in writing of his decision on the request and, where the request is granted, the notice shall be so served before the commencement of the further period determined by the Commissioner.

105AA(4)   [Factors to which Commissioner to have regard]  

In deciding whether to grant or refuse the request, the Commissioner shall have regard to -


(a) the date on which the company lodged a return of its income of the year of income to which the request relates;


(b) if the company did not make a full and true disclosure in its return of all the material facts necessary for an assessment of the taxable income of the company of that year of income - the date on which such a full and true disclosure was made; and


(c) any other matters that he thinks relevant.

105AA(5)   [Dividends paid during additional period]  

If the Commissioner determines a further period in relation to a company in relation to a year of income and dividends (other than special fund dividends) are paid by the company during the further period, so much (if any) of the amount of those dividends as -


(a) is specified in a notice in writing signed by the public officer of the company and lodged with the Commissioner not later than 30 days after the end of the further period; and


(b) does not exceed -


(i) in a case to which paragraph (1)(c) applies - the excess of the amount that is the undistributed amount in relation to the company in relation to that year of income over the amount that would have been that undistributed amount on the basis of the assessment before it was amended; or

(ii) in any other case - the undistributed amount in relation to the company in relation to that year of income,

shall, for the purposes of this Division, be deemed to have been paid during the prescribed period in relation to that year of income.

105AA(6)   [``the prescribed time'' defined]  

In this section, the prescribed time , in relation to a company in relation to a year of income, means -


(a) in the case of a year of income preceding the year of income that ended on 30 June 1963 - the end of that last-mentioned year of income; or


(b) in the case of any other year of income - the time of expiration of the fifteenth day before the end of the prescribed period in relation to that year of income.


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