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TAXATION (UNPAID COMPANY TAX) ASSESSMENT BILL 1982

The Senate, according to Order, resolved itself into Committee for the further consideration of the Bill.

In the Committee

Clause 5 further debated and agreed to.

Clause 6 agreed to.

The Leader of the Australian Democrats (Senator Chipp) moved an amendment, viz: Page 31, after clause 6, insert the following new clause: ''6A. Where- (a) but for this section, a vendor's taxable amount would exist in relation to a person; and

(b) the person establishes that- (i) before the sale of the shares in the company that brought into existence the vendor's taxable amount, he did not know , and had no reason to suspect, that an arrangement or transaction that secured or achieved, in relation to the company, the result referred to in paragraph 5 ( 1) (h) or 5 (2) (h) had been entered into or was intended to be entered into,

(ii) he had no reason to believe that the amount or value paid or given in respect of the sale of the shares was excessive, and

(iii) by reason of the lack of knowledge with respect to the matters referred to in sub-paragraphs (i) and (ii), the person had so managed his assets that payment of the tax imposed on that vendor's taxable amount by the Taxation ( Unpaid Company Tax-Vendors) Act 1982 would result in severe hardship to the person,

the vendor's taxable amount shall not be taken to exist or to have existed in relation to the person.''.

Debate ensued.

Question-That the words proposed to be inserted be inserted-put.

The Committee divided-

AYES, 13

Senators- Bjelke-Petersen Bonner Chipp Crichton-Browne Haines Jessop Macklin Martin Martyr Rae, Peter Townley Withers Teller : Senator MacGibbon

NOES, 39

Senators- Archer Baume Bolkus Button Carrick, Sir John Chaney Childs Coates Coleman Colston Elstob Evans Foreman Georges Gietzelt Grimes Guilfoyle, Dame Margaret Hamer Hill Jones Kilgariff Lajovic Lewis McClelland McIntosh McLaren Messner Missen Mulvihill Primmer Reid Ryan Scott Tate Teague Walsh Watson Young Teller: Senator Collard

And so it was negatived.

Clauses 7 and 8, by leave, taken together, debated and agreed to.

Senator Crichton-Browne, on his behalf and on behalf of Senators Withers, Martyr, Hill, Bonner, Martin, Thomas and Bjelke-Petersen, pursuant to contingent notice, moved an amendment, viz: Page 40, after clause 8, insert the following new clause: ''8A. A primary taxable amount shall not be taken to exist in relation to a person in relation to the sale of shares or of an interest in shares in relation to an amount of ordinary company tax or undistributed profits tax payable by a company in relation to a year of income unless, immediately before the time of sale of the shares or interest in shares, the person knew or believed, or could reasonably be expected to have known or believed, that-

(a) ordinary company tax or undistributed profits tax, as the case may be, was payable, or would become payable, by the company in relation to the year of income; and

(b) an arrangement or transaction had been or would be entered into or carried out for the purpose of securing or achieving the result that the company would not be able to pay to the Commissioner all of the ordinary company tax or undistributed profits tax, as the case may be, that was, or would become, payable by the company in relation to the year of income.''.

Debate ensued.

Question-That the words proposed to be inserted be inserted-put.

The Committee divided-

AYES, 14

Senators- Bjelke-Petersen Bonner Chipp Crichton-Browne Haines Hill Jessop Macklin Martin Martyr Rae, Peter Townley Withers Teller: Senator MacGibbon

NOES, 39

Senators- Archer Baume Bolkus Button Carrick, Sir John Chaney Childs Coates Coleman Collard Colston Elstob Evans Foreman Gietzelt Grimes Guilfoyle, Dame Margaret Hamer Jones Kilgariff Lajovic Lewis McClelland McIntosh McLaren Mason Messner Missen Mulvihill Primmer Reid Ryan Scott Siddons Tate Walsh Watson Young Teller: Senator Sibraa

And so it was negatived.

Clauses 9 to 17, by leave, taken together and agreed to.

Clause 18 read- Senator Macklin moved an amendment, viz: Page 57, after sub- clause (8), insert the following new sub-clause:

''(8A) Sub-section (8) applies whether or not an objection against the assessment was made by the company and, where an objection was made by the company against the assessment, that sub-section applies notwithstanding that the objection by the company has been finalised or is to be taken to have been finalised for the purposes of paragraphs 5 (1) (f) and 5 (2) (f).''.

Debate ensued.

Question-That the words proposed to be inserted be inserted-put and negatived.

Clause 18 agreed to.

Clauses 19 to 22, by leave, taken together, debated and agreed to.

Clause 23 read- Senator Macklin moved an amendment, viz: Page 63, sub-clause (1) , line 33, leave out ''conclusive evidence'', insert ''prima facie evidence''.

Debate ensued.

Question-That the words proposed to be left out be left out-put and negatived.

Amendment negatived accordingly.

Clause 23 agreed to.

Remainder of Bill, by leave, taken as a whole and agreed to.

Bill to be reported without amendment.

The Acting Deputy-President (Senator Collard) resumed the Chair; and the Chairman of Committees (Senator McClelland) reported accordingly.

On the motion of the Minister for Finance (Senator Dame Margaret Guilfoyle) the Report from the Committee was adopted.

Senator Dame Margaret Guilfoyle moved-That this Bill be now read a third time.

Debate ensued.

Senator Martyr addressing the Chair-

And it being half-past six p.m.-