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Indirect Tax Legislation Amendment Bill 2000
Schedule 7 Joint ventures

   

A New Tax System (Australian Business Number) Act 1999

1  After subsection 37(1)

Insert:

          (1A)  Paragraph (1)(f) does not include a * non-entity joint venture.

2  Section 41 (at the end of the definition of company )

Add “or a * non-entity joint venture”.

3  Section 41

Insert:

non-entity joint venture means an arrangement that the Registrar is satisfied is a contractual arrangement:

                     (a)  under which 2 or more parties undertake an economic activity that is subject to the joint control of the parties; and

                     (b)  that is entered into to obtain individual benefits for the parties, in the form of a share of the output of the arrangement rather than joint or collective profits for all the parties.

A New Tax System (Goods and Services Tax) Act 1999

4  Section 51-1

Omit “Companies”, substitute “Entities”.

5  Subsections 51-5(1) and (2)

Omit “ * companies”, substitute “entities”.

6  Paragraphs 51-5(1)(c), (d) and (e) and 51-10(b)

Omit “companies”, substitute “entities”.

7  Paragraphs 51-5(1)(e), 51-45(2)(b) and (c), 51-70(1)(c) and 51-90(a)

Omit “company”, substitute “entity”.

8  Section 51-10

Omit “A * company”, substitute “An entity”.

9  Section 51-10

Omit “company”, substitute “entity”.

10  Subsections 51-30(1), 51-35(1) and 51-40(1)

Omit “ * company”, substitute “entity”.

11  Paragraphs 51-30(2)(a), 51-40(1)(b), 51-45(2)(a), 51-70(1)(a) and 51-110(1)(b)

Omit “ * company”, substitute “entity”.

12  After subsection 51-45(2)

Insert:

          (2A)  However, while an election made by the * joint venture operator under section 51-52 has effect:

                     (a)  Division 17 applies to the joint venture operator as if the joint venture operator had an additional * net amount, relating to all the * GST joint ventures for which the joint venture operator is the joint venture operator, for each tax period; and

                     (b)  that additional net amount is worked out by aggregating what would be the additional * net amounts relating to each GST joint venture under subsection (2) if that subsection applied.

13  After subsection 51-50(2)

Insert:

          (2A)  However, while an election made by the * joint venture operator under section 51-52 has effect:

                     (a)  the joint venture operator must, in relation to all the * GST joint ventures for which the joint venture operator is the joint venture operator, give to the Commissioner a single * GST return for each tax period applying to the joint venture operator; and

                     (b)  the * net amount stated in such a return must be the net amount relating to all those * GST joint ventures.

14  After section 51-50

Insert:

51-52   Consolidation of GST returns relating to GST joint ventures

Electing to consolidate GST returns

             (1)  The * joint venture operator of 2 or more * GST joint ventures may, by notifying the Commissioner in the * approved form, elect to give to the Commissioner consolidated * GST returns relating to all the GST joint ventures of the joint venture operator.

             (2)  The election takes effect on the day specified in the notice. However, the day specified must be the first day of a tax period applying to the * joint venture operator that has not already ceased when the notice is given.

Withdrawal of elections

             (3)  The * joint venture operator may, by notifying the Commissioner in the * approved form, withdraw the election.

             (4)  The withdrawal takes effect on the day specified in the notice. However, the day specified:

                     (a)  must be the first day of a tax period applying to the * joint venture operator that has not already ceased when the notice is given; and

                     (b)  must not be a day occurring earlier than 12 months after the election took effect.

Disallowance of elections

             (5)  The Commissioner may disallow the election if the Commissioner is satisfied that the * joint venture operator has a history of failing to comply with the joint venture operator’s obligations (either as a joint venture operator or in any other capacity) under a * taxation law.

Note:          Disallowing an election is a reviewable GST decision (see Division 7 of Part VI of the Taxation Administration Act 1953 ).

             (6)  The disallowance is taken to have had effect from the start of the tax period in which the disallowance occurs.

15  Subsection 51-55(1)

Omit “a * GST joint venture”, substitute “one or more * GST joint ventures”.

16  Paragraph 51-55(1)(a)

Omit “the GST joint venture”, substitute “that GST joint venture or those GST joint ventures”.

17  Section 51-60

Omit “a * GST joint venture”, substitute “one or more * GST joint ventures”.

18  Section 51-60

Omit “the GST joint venture”, substitute “that GST joint venture or those GST joint ventures”.

19  Paragraph 51-90(a)

Omit “ * companies”, substitute “entities”.

20  After subsection 184-1(1)

Insert:

          (1A)  Paragraph (1)(f) does not include a * non-entity joint venture.

21  Section 195-1 (at the end of the definition of company )

Add “or a * non-entity joint venture”.

22  Section 195-1 (definition of joint venture operator )

Omit “ * company”, substitute “entity”.

23  Section 195-1 (definition of participant )

Omit “a * company”, substitute “an entity”.

24  Section 195-1

Insert:

minerals has the meaning given by section 330-25 of the * ITAA 1997.

25  Section 195-1

Insert:

non-entity joint venture has the meaning given by subsection 995-1(1) of the * ITAA 1997.

Income Tax Assessment Act 1936

26  Subsection 6(1) (at the end of the definition of company )

Add “or non-entity joint ventures”.

27  Subsection 6(1)

Insert:

non-entity joint venture has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997 .

Income Tax Assessment Act 1997

28  After subsection 960-100(1)

Insert:

          (1A)  Paragraph (1)(e) does not include a * non-entity joint venture.

29  Subsection 995-1(1) (at the end of the definition of company )

Add “or a * non-entity joint venture”.

30  Subsection 995-1(1)

Insert:

non-entity joint venture means an arrangement that the Commissioner is satisfied is a contractual arrangement:

                     (a)  under which 2 or more parties undertake an economic activity that is subject to the joint control of the parties; and

                     (b)  that is entered into to obtain individual benefits for the parties, in the form of a share of the output of the arrangement rather than joint or collective profits for all the parties.

Taxation Administration Act 1953

31  Section 8AAZA (at the end of the definition of company )

Add “or a non-entity joint venture”.

32  Section 8AAZA

Insert:

non-entity joint venture has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997 .

33  Subsection 62(2) (after table item 25)

Insert:

25A

disallowing an election to consolidate GST returns relating to GST joint ventures

subsection 51-52(5)