FRINGE BENEFITS TAX ASSESSMENT ACT 1986

PART XIC - APPLICATION OF THE ACT TO NOMINATED STATE OR TERRITORY BODIES  

SECTION 135V   WORKING OUT THE NOTIONAL TAX AMOUNT WHERE NOMINATIONS HAVE BEEN MADE, VARIED OR REVOKED  

135V(1)   When section applies.  

This section applies if a State or Territory does any one or more of the following under section 135S:


(a) makes one or more nominations;


(b) varies one or more nominations;


(c) revokes one or more nominations;

with effect from the start of the same year of tax (the year of the change ).

135V(2)   State or Territory to apportion prior year's assessed tax for instalment purposes.  

If this section applies, the State or Territory must, in accordance with this section, specify the amounts of the tax that are to be taken for the purposes of subsection 110(1) to be assessed in respect of the following in respect of the year of tax (the prior year of tax ) immediately preceding the year of the change:


(a) each body that is a nominated State or Territory body of the State or Territory for the year of the change (even if that year is not the first year of tax for that body);


(b) the State or Territory.

135V(3)   [Summation of amounts]  

The sum of the amounts specified under subsection (2) must equal the sum of the tax that was assessed in respect of the following in respect of the prior year of tax:


(a) the State or Territory;


(b) if there were nominated State or Territory bodies of the State or Territory for the prior year of tax - those bodies.

135V(4)   Form etc. of apportionment.  

The State or Territory must:


(a) specify the amounts after it makes the last of the nominations, variations or revocations; and


(b) do so in the approved form; and


(c) give the approved form to the Commissioner on or before 21 May in the year of the change.

135V(5)   Effect of apportionment.  

For the purposes of subsection 110(1), the amounts specified in the approved form have effect to replace the amounts that would otherwise be the tax assessed for the prior year of tax in respect of the nominated State or Territory bodies and the State or Territory.

135V(6)   Consequences of failure to apportion.  

If the requirements of this section are not complied with:


(a) any making, variation or revocation of a nomination to which this section applies has no effect in relation to any year of tax; and


(b) all existing nominations of the State or Territory under section 135S cease to have effect at the start of the year of the change; and


(c) the amount of the tax that is taken for the purposes of subsection 110(1) to have been assessed in respect of the State or Territory in respect of the prior year of tax is equal to the sum of the amounts of tax assessed in respect of that year of tax in respect of the following:


(i) the State or Territory;

(ii) if there were nominated State or Territory bodies for that year of tax - those bodies.




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