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A New Tax System (Australian Business Number) Bill 1998

Part 4 Rules for interpreting this Act

Division 12 Identifying defined terms

32   When defined terms are identified

             (1)  Many of the terms used in this Act are defined.

             (2)  Most defined terms in this Act are identified by an asterisk appearing at the start of the term: as in “ * enterprise”. The footnote that goes with the asterisk contains a signpost to the Dictionary definitions in section 41.

33   When terms are not identified

                   Once a defined term has been identified by an asterisk, later occurrences of the term in the same subsection are not usually asterisked.

34   Identifying the defined term in a definition

                   Within a definition, the defined term is identified by bold italics .



 

Division 13 What forms part of this Act

35   What forms part of this Act

             (1)  These all form part of this Act:

   the headings to the Parts, Divisions and Subdivisions of this Act;

   the headings to the sections and subsections of this Act;

   the notes and examples (however described) that follow provisions of this Act.

             (2)  The asterisks used to identify defined terms form part of this Act. However, if a term is not identified by an asterisk, disregard that fact in deciding whether or not to apply to that term a definition or other interpretation provision.

36   What does not form part of this Act

                   Footnotes and endnotes do not form part of this Act.



 

Division 14 Meaning of some important concepts

37   Entity

             (1)  Entity means any of the following:

                     (a)  an * individual;

                     (b)  a body corporate;

                     (c)  a corporation sole;

                     (d)  a body politic;

                     (e)  a * partnership;

                      (f)  any other unincorporated association or body of * persons;

                     (g)  a trust;

                     (h)  a * superannuation fund.

Note:          The term entity is used in a number of different but related senses. It covers all kinds of legal person. It also covers groups of legal persons, and other things, that in practice are treated as having a separate identity in the same way as a legal person does.

             (2)  The trustee of a trust or of a * superannuation fund is taken to be an entity consisting of the * person who is the trustee, or the persons who are the trustees, at any given time.

Note:          This is because a right or obligation cannot be conferred or imposed on an entity that is not a legal person.

             (3)  A legal * person can have a number of different capacities in which the person does things. In each of those capacities, the person is taken to be a different entity.

Example:    In addition to his or her personal capacity, an individual may be:

    sole trustee of one or more trusts; and

    one of a number of trustees of a further trust.

                   In his or her personal capacity, he or she is one entity. As trustee of each trust, he or she is a different entity. The trustees of the further trust are a different entity again, of which the individual is a member.

             (4)  If a provision refers to an entity of a particular kind, it refers to the entity in its capacity as that kind of entity, not to that entity in any other capacity.

Example:    A provision that refers to a company does not cover a company in a capacity as trustee, unless it also refers to a trustee.

38   Enterprise

             (1)  An enterprise is an activity, or series of activities, done:

                     (a)  in the form of a * business; or

                     (b)  in the form of an adventure or concern in the nature of trade; or

                     (c)  on a regular or continuous basis, in the form of a lease, licence or other grant of an interest in property; or

                     (d)  by the trustee of a fund that is covered by, or by an authority or institution that is covered by, Subdivision 30-B of the * ITAA 1997 and to which deductible gifts can be made; or

                     (e)  by a charitable institution or by a trustee of a charitable fund; or

                      (f)  by a religious institution; or

                     (g)  by the Commonwealth, a State or a Territory, or by a body corporate, or corporation sole, established for a public purpose by or under a law of the Commonwealth, a State or a Territory.

             (2)  However, enterprise does not include an activity, or series of activities, done:

                     (a)  as an employee or other * PAYE earner (unless it is done in supplying services as the holder of an office that the employee or PAYE earner has accepted in the course of or in connection with an activity or series of activities of the kind mentioned in subsection (1)); or

Note:       An employee’s or PAYE earner’s acts will still form part of the activities of the enterprise in which he or she is employed.

                     (b)  as a private recreational pursuit or hobby; or

                     (c)  by an individual (other than a trustee of a charitable fund), or a * partnership (all the members of which are individuals), without a reasonable expectation of profit or gain; or

                     (d)  as a member of a local governing body established by or under a law of a State or Territory (other than an eligible local governing body within the meaning of section 221A of the * ITAA 1936).

39   Carrying on an enterprise in Australia

                   An * enterprise is carried on in Australia if the enterprise is carried on through:

                     (a)  a permanent establishment (as defined in subsection 6(1) of the * ITAA 1936); or

                     (b)  a place that would be such a permanent establishment if paragraph (e), (f) or (g) of that definition did not apply.

40   Electronic lodgment of documents

                   A document is lodged electronically if it is transmitted to the Registrar in an electronic format approved by the Registrar.



 

Division 15 The Dictionary

41   Dictionary

                   In this Act, except so far as the contrary intention appears:

ABN (Australian Business Number) for an * entity means the entity’s ABN as shown in the * Australian Business Register.

associate has the meaning given by section 318 of the * ITAA 1936.

Australia does not include any external Territory. However, it includes an installation (within the meaning of the Customs Act 1901 ) that is deemed by section 5C of the Customs Act 1901 to be part of Australia.

Australian Business Register means the register established under section 24.

business includes any profession, trade, employment, vocation or calling, but does not include occupation as an employee.

carried on in Australia , in relation to an * enterprise, has the meaning given by section 39.

carrying on an * enterprise includes doing anything in the course of the commencement or termination of the enterprise.

company means:

                     (a)  a body corporate; or

                     (b)  any other unincorporated association or body of * persons;

but does not include a * partnership.

Corporations Law company means a body registered as a company under the Corporations Law.

electronic signature , in relation to a * person, means a unique identification in an electronic form that is approved by the Commissioner of Taxation for the purposes of the * ITAA 1936.

enterprise has the meaning given by section 38.

entity has the meaning given by section 37.

entrusted person has the meaning given by subsection 30(1).

government entity means:

                     (a)  a Department of State of the Commonwealth; or

                     (b)  a Department of the Parliament; or

                     (c)  a branch of the Australian Public Service in relation to which a * person has, under an Act, the powers of, or exercisable by, the Secretary of a Department of the Australian Public Service; or

                     (d)  a Department of State of a State or Territory.

individual means a natural person.

ITAA 1936 means the Income Tax Assessment Act 1936 .

ITAA 1997 means the Income Tax Assessment Act 1997 .

lodged electronically has the meaning given by section 40.

official employment means:

                     (a)  appointment or employment by the Commonwealth, or the performance of services for the Commonwealth; or

                     (b)  the exercise of powers or performance of functions under a delegation by the * Registrar.

Note:          The Registrar may delegate powers and functions under section 8 of the Taxation Administration Act 1953 .

partnership has the meaning given by section 995-1 of the * ITAA 1997.

PAYE earner means an employee as defined by section 221A of the * ITAA 1936.

person includes a * company.

protected document means any document made or given under, or for the purposes of, this Act.

protected information means information that meets all the following conditions:

                     (a)  it relates to the affairs of a * person other than the * entrusted person;

                     (b)  it was obtained by the entrusted person, or by any other person, in the course of * official employment;

                     (c)  it was disclosed or obtained under this Act.

Registrar means the Registrar of the * Australian Business Register.

superannuation fund has the meaning given by section 995-1 of the ITAA 1997.

taxation law has the meaning given by section 2 of the Taxation Administration Act 1953 .

TFN means tax file number as defined in section 202A of the * ITAA 1936.

you : if a provision of this Act uses the expression you , it applies to entities generally, unless its application is expressly limited.

Note:          The expression you is not used in provisions that apply only to entities that are not individuals.

(215/98)



 

 

[ Minister’s second reading speech made in—

House of Representatives on 2 December 1998

Senate on 10 December 1998 ]