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Thursday, 3 November 1983
Page: 2313

Mr KEATING (Treasurer)(4.13) —I move:

That the Bill be now read a second time.

The purpose of this Bill is to increase the basic rate of tax payable by a company under section 126 of the Income Tax Assessment Act on interest paid on bearer debentures where the company does not disclose the names and addresses of the debenture holders to the Commissioner of Taxation. This provision has existed in the income tax law as an anti-avoidance measure for many years and the rate was last increased in 1974. It is considered opportune to increase the rate to one more appropriate to the provision's purposes.

For interest paid or credited on or after the date of commencement of this Act, the rate of tax will be 60 per cent-a rate equivalent to the special rate applicable to accumulating trust income assessed under section 99A of the Income Tax Assessment Act. The technical aspects of the Bill are explained in the memorandum that I have had circulated to honourable members. I commend this Bill to the House.

Debate (on motion by Mr Howard) adjourned.


Bill presented by Mr Keating, and read a first time.