INCOME TAX ASSESSMENT ACT 1997

CHAPTER 1 - INTRODUCTION AND CORE PROVISIONS  

PART 1-4 - CHECKLISTS OF WHAT IS COVERED BY CONCEPTS USED IN THE CORE PROVISIONS  

Division 9 - Entities that must pay income tax  

SECTION 9-5   Entities that work out their income tax by reference to something other than taxable income  

9-5(1)  


For some entities, some or all of their income tax for the * financial year is worked out as described in the table.

Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .


Item This kind of entity is liable to pay income tax worked out by reference to: See:
1 A company that was a member of a wholly-owned group is jointly and severally liable to pay an amount of income tax if a former subsidiary in the group is treated as having disposed of leased plant and does not pay all of the income tax resulting from that treatment. section 45-25
.
2 A superannuation provider in relation to a complying superannuation fund is to be assessed and is liable to pay income tax on no-TFN contributions income as well as on taxable income. sections 295-5 and 295-605
.
3 A superannuation provider in relation to a non-complying superannuation fund is to be assessed and is liable to pay income tax on no-TFN contributions income as well as on taxable income. sections 295-5 and 295-605
.
4 An RSA provider is to be assessed and is liable to pay income tax on no-TFN contributions income as well as on taxable income. sections 295-5, 295-605 and 320-155
.
4A An entity is liable to pay extra income tax on government recoupments relating to R & D activities for which entitlements to tax offsets arise under Division 355. Subdivision 355-G
.
5 An Australian resident individual with:
· eligible foreign remuneration under section 23AF; or
· foreign earnings under section 23AG;
(from working in a foreign country) is liable to pay income tax worked out by reference to his or her assessable income less some of his or her deductions.
section 23AF or 23AG
.
6 A trustee covered by item 11 in the table in section 9-1 is liable to pay income tax worked out by reference to the net income of the trust for the income year. sections 98, 99 and 99A
.
7 (Repealed by No 53 of 2016)
.
8 The trustee of a public trading trust is liable to pay income tax worked out by reference to the net income of the trust for the income year. section 102S
.
9 An entity that is liable to pay income tax (worked out by reference to taxable income or otherwise) is also liable to pay income tax worked out by reference to diverted income or diverted trust income for the income year. section 121H
.
10 An Australian insurer that re-insures overseas can elect to pay, as agent for the re-insurer, income tax worked out by reference to the amount of the re-insurance premiums. section 148

9-5(2)  
For entities covered by an item in the table in subsection (1), the income year is the same as the * financial year, except in these cases:


(a) for a company, or an entity covered by item 2 or 3 in the table, the income year is the previous financial year;


(b) if an entity has an accounting period that is not the same as the financial year, each such accounting period or, for a company, each previous accounting period is an income year.

Note 1:

The Commissioner can allow an entity to adopt an accounting period ending on a day other than 30 June. See section 18 of the Income Tax Assessment Act 1936 .

Note 2:

An accounting period ends, and a new accounting period starts, when a partnership becomes, or ceases to be, a VCLP, an ESVCLP, an AFOF or a VCMP. See section 18A of the Income Tax Assessment Act 1936 .


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