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Thursday, 10 May 1984
Page: 1987

Senator WALSH (Minister for Resources and Energy)(6.20) —I move:

That the Bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows-

This Bill, like the one I have just introduced, is identical with the earlier Bill by the same title. That Bill was not, following defeat of the amending assessment Bill to which it related, proceeded with in this chamber. This Bill will formally impose a tax, to be called dividend recoupment tax, on the dividend amount determined in accordance with the rules being inserted in the recoupment tax legislation by the amending assessment Bill.

The underlying purpose of the amendments is to recover personal income tax escaped by individual former owners of stripped companies. That will be done in a direct manner wherever possible. However, in cases where former owners held their shares through interposed companies or trusts recovery may in certain circumstances be by way of imposing on one or more of the interposed companies or trusts a tax equivalent to the maximum personal rate of tax applying in the year of income in which the shares in the stripped company were sold. This Bill will impose that tax. I commend the Bill to the Senate.

Debate (on motion by Senator Reid) adjourned.