Western Australian Consolidated Acts Western Australian Consolidated Acts1 This reprint is a compilation as at 15 October 2010 of the
Pay-roll Tax Assessment Act 2002 and includes the amendments made by the
other written laws referred to in the following table 1a,
3, 4. The table also contains information about any
reprint.
|
Short title |
Number and year |
Assent |
Commencement |
|---|---|---|---|
|
48 of 2002 |
20 Mar 2003 |
1 Jul 2003 (see. s. 2 and Gazette
27 Jun 2003 p. 2383) |
|
|
Business Tax Review (Assessment) Act 2003
Pt. 4 and 5 |
40 of 2003 |
30 Jun 2003 |
1 Jul 2003 (see s. 2(1)) |
|
Revenue Laws Amendment and Repeal Act 2004 Pt.
3 |
12 of 2004 |
29 Jun 2004 |
29 Jun 2004 (see s. 2(1)) |
|
Revenue Laws Amendment (Tax Relief) Act 2004
Pt. 2 5, 6 |
82 of 2004 |
8 Dec 2004 |
Div. 1 and 2: 1 Jan 2005
(see s. 2(2)); |
|
Revenue Laws Amendment Act 2005
Pt. 2 |
11 of 2005 |
30 Aug 2005 |
18 May 2005 (see s. 2(2)) |
|
Reprint 1: The Pay-roll Tax Assessment
Act 2002 as at 6 Jan 2006 (includes amendments listed
above except those in the Revenue Laws Amendment (Tax Relief)
Act 2004 Pt. 2 Div. 3) |
|||
|
Financial Legislation Amendment and Repeal Act 2006
s. 4 |
77 of 2006 |
21 Dec 2006 |
1 Feb 2007 (see s. 2(1) and Gazette
19 Jan 2007 p. 137) |
|
Training Legislation Amendment and Repeal
Act 2008 s. 59 |
44 of 2008 |
10 Dec 2008 |
10 Jun 2009 (see s. 2(2)) |
|
Pay-roll Tax Assessment Amendment Act 2010
Pt. 2 Div. 1 and 2 |
15 of 2010 |
25 Jun 2010 |
25 Jun 2010 (see s. 2(a)) |
|
Reprint 2: The Pay-roll Tax Assessment
Act 2002 as at 15 Oct 2010 (includes amendments listed
above) |
|||
1a On the date as at which this
reprint was prepared, provisions referred to in the following table had not come
into operation and were therefore not included in compiling the reprint. For
the text of the provisions see the endnotes referred to in the table.
Provisions that have not come
into operation
|
Short title |
Number and year |
Assent |
Commencement |
|
Pay-roll Tax Assessment Amendment Act 2010
Pt. 2 Div. 3 7 |
15 of 2010 |
25 Jun 2010 |
1 Jul 2012 (see s. 2(b)) |
2 Repealed by the Tax Laws Amendment (Repeal of Inoperative
Provisions) Act 2006 of the Commonwealth.
3 Under the Commonwealth Places (Mirror Taxes Administration)
Act 1999 s. 7 this Act is to be read and construed with any
modifications referred to in subsection (1) of that section and, in
particular, with the modifications set out in the Commonwealth Places (Mirror
Taxes Administration) Regulations 2007. r. 1-4 and Pt. 5 Div. 2 of
those regulations read as follows:
These regulations are the Commonwealth Places (Mirror Taxes
Administration) Regulations 2007.
These regulations come into operation on the day on which the
Commonwealth Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice
2007 comes into operation.
3. When certain
modifications have effect
(1) The modifications prescribed in Part 2, Part 3, Part 5,
Part 6 Division 2 and Part 7 have effect on and from
1 July 2003.
(2) The modifications prescribed in Part 4 have effect on and from
9 April 2006 and prevail over the modifications in the Commonwealth
Places (Mirror Taxes Administration) Regulations 2002 Part 5 to
the extent of any inconsistency.
Note: Modifications prescribed for the purposes
of section 7(2) of the Act may be expressed to take effect from a date that
is earlier than the date on which the modifications are published in the
Gazette, see section 7(3) of the Act.
4. Modification
of State taxing laws
(1) For the purposes of section 7(2) of the Act, each State taxing
law is taken to be modified to the extent necessary to give effect to
subregulation (2).
(2) If —
(a) a State taxing law applies, or could apply, to any extent, to or in
relation to an event, state of affairs or transaction, and the corresponding
applied law also applies, or could apply, to any extent, to or in relation to
the same event, state of affairs or transaction; and
(b) a person is required or permitted, or could be required or permitted,
to take an action under both the State taxing law and the corresponding applied
law in relation to the event, state of affairs or transaction; and
(c) the person has taken the action in accordance with the corresponding
applied law; and
(d) the Commissioner of State Revenue has sufficient information about the
event, state of affairs or transaction to carry out his or her functions in
relation to it under the State taxing law or the corresponding applied law or
both, as the case requires,
then —
(e) the person is not required to take the action under the State taxing
law; and
(f) the Commissioner may carry out his or her functions in relation to the
event, state of affairs or transaction as if the person had taken whatever
action is required or permitted under the State taxing law in relation to the
event, state of affairs or transaction.
(3) The particular modifications set out in these regulations of certain
State taxing laws have effect for the purposes of section 7(2) of the
Act.
Division 2 — The Pay-roll Tax
Assessment Act 2002
27. Modification
of the Pay-roll Tax Assessment Act 2002
This Division sets out modifications of the Pay-roll Tax Assessment
Act 2002 in its application as a law of Western Australia.
After section 4 the following section is inserted —
“
4A. Application
of Act in non-Commonwealth places
(1) In this Act, unless the contrary intention appears —
(a) a reference to this Act is to be read as a reference to this Act in
its application as a law of Western Australia; and
(b) a reference to the regulations is to be read as a reference to the
Pay-roll Tax Assessment Regulations 2003 in their application as a law of
Western Australia; and
(c) a reference to the Pay-roll Tax Act 2002 is to be read as
a reference to that Act in its application as a law of Western Australia;
and
(d) a reference to the Taxation Administration Act 2003 is to
be read as a reference to that Act in its application as a law of Western
Australia.
(2) This Act is to be read with the applied Pay-roll Tax Assessment Act as
a single body of law.
(3) In the following provisions, a reference to WA taxable wages is to be
read as a reference to WA taxable wages as defined in this Act or WA taxable
wages as defined in the applied Pay-roll Tax Assessment Act —
sections 17(1) and (3) and 23(1) and the Glossary clause 1 (the
definitions of interstate non-group employer and local
non-group employer).
(4) In section 22A(6), a reference to WA taxable wages is to be read
as a reference to WA taxable wages as defined in this Act and WA taxable wages
as defined in the applied Pay-roll Tax Assessment Act.
”.
29. Section 5
modified
(1) Section 5(2)(b) is modified by inserting after
“State” —
“
(whether or not in Commonwealth places in that State) or wholly in
Commonwealth places in Western Australia
”.
(2) After section 5(2) the following subsection is
inserted —
“
(3) In this section, a reference to Western Australia (except the
reference inserted by the Commonwealth Places (Mirror Taxes Administration)
Regulations 2007 regulation 29(1)) is to be read as not including
Commonwealth places in Western Australia.
”.
After section 16 the following section is inserted —
“
16A. Dual liability — non-group
employers
(1) If a non-group employer is, for a period, liable to pay pay-roll tax
under Part 2 Division 2 of this Act and liable to pay pay-roll tax
under Part 2 Division 2 of the applied Pay-roll Tax Assessment Act
then, for the purposes of calculating the amount of pay-roll tax the employer is
liable to pay, a reference to WA taxable wages in Part 2 Division 2 of
this Act is to be read as a reference to WA taxable wages as defined in this Act
and WA taxable wages as defined in the applied Pay-roll Tax Assessment
Act.
(2) The employer need not pay the pay-roll tax which the employer is
otherwise liable to pay for the period, in accordance with subsection (1),
to the extent to which the employer has paid pay-roll tax under Part 2
Division 2 of the applied Pay-roll Tax Assessment Act for the
period.
”.
After section 20 the following section is inserted —
“
(1) If a group is, for a period, liable to pay pay-roll tax under
Part 2 Division 3 of this Act and liable to pay pay-roll tax under
Part 2 Division 3 of the applied Pay-roll Tax Assessment Act then, for
the purposes of calculating the amount of pay-roll tax the group is liable to
pay, a reference to WA taxable wages in Part 2 Division 3 of this Act
(other than section 17(1) and (3)) is to be read as a references to WA
taxable wages as defined in this Act and WA taxable wages as defined in the
applied Pay-roll Tax Assessment Act.
(2) The members of a group need not pay the pay-roll tax which the group
is otherwise liable to pay for the period, in accordance with
subsection (1), to the extent to which the members of the group have paid
pay-roll tax under Part 2 Division 3 of the applied Pay-roll Tax
Assessment Act for the period.
”.
32. Section 29
modified
After section 29(1b) the following subsection is
inserted —
“
(1ba) If the employer or group is liable to pay pay-roll tax under both
this Act and the applied Pay-roll Tax Assessment Act then, in
subsection (1a), the expected pay-roll tax liability is the sum
of —
(a) the amount of expected pay-roll tax liability in subsection (1b)
of this Act; and
(b) the amount of expected pay-roll tax liability in subsection (1b)
of the applied Pay-roll Tax Assessment Act.
”.
After section 29 the following section is inserted in
Part 3 —
“
(1) In sections 26(1) and 29(9), a reference to WA taxable wages to
be specified in a return for a period is to be read as a reference to the sum
of —
(a) the amount of WA taxable wages to be specified in the return for that
period for the purposes of section 26(1) or 29(9) of this Act (which
ever is relevant); and
(b) the amount of WA taxable wages to be specified in a return for that
period for the purposes of section 26(1) or 29(9) of the applied
Pay-roll Tax Assessment Act (which ever is relevant).
(2) If a person has lodged a return relating to a period under
section 26(1) or 29(9) of the applied Pay-roll Tax Assessment Act, the
person need not lodge a return for that period under section 26(1)
or 29(9) of this Act.
”.
(1) The Glossary clause 1 is modified by inserting in their
appropriate alphabetical positions —
“
applied Pay-roll Tax Act means the
Pay-roll Tax Act 2002 of Western Australia in its application as a
law of the Commonwealth in or in relation to Commonwealth places in Western
Australia in accordance with the Commonwealth Act;
applied Pay-roll Tax Assessment Act means the Pay-roll
Tax Assessment Act 2002 of Western Australia in its application as a
law of the Commonwealth in or in relation to Commonwealth places in Western
Australia in accordance with the Commonwealth Act;
Commonwealth Act means the Commonwealth Places (Mirror
Taxes) Act 1998 of the Commonwealth;
”.
(2) The Glossary clause 1 is modified in the definition of “WA
taxable wages” by deleting “in Western Australia”.
(3) The Glossary clause 4 is modified as follows:
(a) in subclause (1)(a) by inserting after
“State” —
“
(whether or not in Commonwealth places in that State) or
wholly in Commonwealth places in Western Australia
”;
(b) by inserting after subclause (2) the following
subclause —
“
(3) In subclause (1)(a) and (b), a reference to
Western Australia (except the reference inserted by the Commonwealth Places
(Mirror Taxes Administration) Regulations 2007 regulation 34(3)(a)) is
to be read as not including Commonwealth places in Western Australia.
”.
4 Under the Commonwealth Places (Mirror Taxes) Act 1998
s. 8(2) of the Commonwealth, this Act is to be read and construed with any
modifications referred to in subsection (1) of that section and, in
particular, with the modifications set out in the Commonwealth Places (Mirror
Taxes) (Modification of Applied Laws (WA)) Notice 2007. r. 1-5 and Pt.
5 Div. 2 of that notice read as follows:
This notice is the Commonwealth Places (Mirror Taxes) (Modification of
Applied Laws (WA)) Notice 2007.
This notice comes into operation on the day after the day on which it is
registered under the Legislative Instruments Act 2003 of the
Commonwealth.
3. When
certain modifications have effect
(1) The modifications prescribed in Part 2, Part 3, Part 5,
Part 6 Division 2 and Part 7 have effect on and from
1 July 2003.
(2) The modifications prescribed in Part 4 have effect on and from
9 April 2006 and prevail over the modifications in the Commonwealth
Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2002
Part 5 to the extent of any inconsistency.
Note: Modifications prescribed in a notice
under section 8 of the Act may be expressed to take effect from a date that
is earlier than the date on which the modifications are published in the
Commonwealth of Australia Gazette, see section 8(5) of the
Act.
In this notice —
applied WA law means the provisions of a State taxing law of
Western Australia that apply or are taken to have applied in relation to
Commonwealth places in Western Australia in accordance with the Commonwealth
Mirror Taxes Act;
Commissioner of State Revenue means the Commissioner of
State Revenue of Western Australia appointed in accordance with the Taxation
Administration Act 2003 section 6 of Western Australia;
Commonwealth Mirror Taxes Act means the Commonwealth
Places (Mirror Taxes) Act 1998 of the Commonwealth.
5. Modification of applied WA laws
(1) For the purposes of the Commonwealth Mirror Taxes Act section 8,
each applied WA law is taken to be modified to the extent necessary to give
effect to subclause (2).
(2) If —
(a) an applied WA law applies, or could apply, to any extent, to or in
relation to an event, state of affairs or transaction, and the corresponding
State taxing law also applies, or could apply, to any extent, to or in relation
to the same event, state of affairs or transaction; and
(b) a person is required or permitted, or could be required or permitted,
to take an action under both the applied WA law and the corresponding State
taxing law in relation to the event, state of affairs or transaction;
and
(c) the person has taken the action in accordance with the corresponding
State taxing law; and
(d) the Commissioner of State Revenue has sufficient information about the
event, state of affairs or transaction to carry out his or her functions in
relation to it under the applied WA law or the corresponding State taxing law or
both, as the case requires,
then —
(e) the person is not required to take the action under the applied WA
law; and
(f) the Commissioner may carry out his or her functions in relation to the
event, state of affairs or transaction as if the person had taken whatever
action is required or permitted under the applied WA law in relation to the
event, state of affairs or transaction.
(3) The particular modifications set out in this notice of certain applied
WA laws have effect for the purposes of the Commonwealth Mirror Taxes Act
section 8.
Division
2 — The applied Pay-roll Tax Assessment
Act 2002
28. Modification
of the applied Pay-roll Tax Assessment Act 2002
This Division sets out modifications of the Pay-roll Tax Assessment
Act 2002 of Western Australia in its application as a law of the
Commonwealth in or in relation to Commonwealth places in Western
Australia.
After section 4 the following section is inserted —
“
4A. Application
of Act in Commonwealth places
(1) In this Act, unless the contrary intention appears —
(a) a reference to this Act is to be read as a reference to this Act in
its application as a law of the Commonwealth in or in relation to
Commonwealth places in Western Australia in accordance with the
Commonwealth Mirror Taxes Act; and
(b) a reference to the regulations is to be read as a reference to the
Pay-roll Tax Assessment Regulations 2003 of Western Australia in their
application as a law of the Commonwealth in or in relation to Commonwealth
places in Western Australia in accordance with the Commonwealth Mirror Taxes
Act; and
(c) a reference to the Pay-roll Tax Act 2002 is to be read as
a reference to the Pay-roll Tax Act 2002 of Western Australia in its
application as a law of the Commonwealth in or in relation to Commonwealth
places in Western Australia in accordance with the Commonwealth Mirror Taxes
Act; and
(d) a reference to the Taxation Administration Act 2003 is to
be read as a reference to the Taxation Administration Act 2003 of
Western Australia in its application as a law of the Commonwealth in or in
relation to Commonwealth places in Western Australia in accordance with the
Commonwealth Mirror Taxes Act.
(2) This Act is to be read with the corresponding Pay-roll Tax Assessment
Act as a single body of law.
(3) In the following provisions, a reference to WA taxable wages is to be
read as a reference to WA taxable wages as defined in this Act or WA taxable
wages as defined in the corresponding Pay-roll Tax Assessment Act —
sections 17(1) and (3) and 23(1) and the Glossary clause 1 (the
definitions of interstate non-group employer and local
non-group employer).
(4) In section 22A(6), a reference to WA taxable wages is to be read
as a reference to WA taxable wages as defined in this Act and WA taxable wages
as defined in the corresponding Pay-roll Tax Assessment Act.
(5) In addition to being modified as prescribed by the Commonwealth
Places (Mirror Taxes) (Modification of Applied Laws (WA)) Notice 2007,
this Act is deemed to be further modified to any extent that is necessary or
convenient —
(a) to enable this Act to operate effectively as a law of the
Commonwealth; and
(b) to ensure that the combined liability of a taxpayer under this Act and
the corresponding Pay-roll Tax Assessment Act is as nearly as possible the same
as the taxpayer’s liability would be under the corresponding Pay-roll Tax
Assessment Act alone if the Commonwealth places in Western Australia were not
Commonwealth places.
”.
30. Section 5
modified
(1) Section 5(2)(b) is modified by inserting after
“State” —
“
(whether or not in Commonwealth places in that State) or wholly in
Western Australia (other than in Commonwealth places in Western
Australia)
”.
(2) After section 5(2) the following subsection is
inserted —
“
(3) In this section, a reference to Western Australia (except the
references inserted by the Commonwealth Places (Mirror Taxes) (Modification
of Applied Laws (WA)) Notice 2007 clause 30(1)) is to be read as
referring only to Commonwealth places in Western Australia.
”.
After section 16 the following section is inserted —
“
16A. Dual
liability — non-group employers
(1) If a non-group employer is, for a period, liable to pay pay-roll tax
under both Part 2 Division 2 of this Act and liable to pay pay-roll
tax under Part 2 Division 2 of the corresponding Pay-roll Tax
Assessment Act then, for the purposes of calculating the amount of pay-roll tax
the employer is liable to pay, a reference to WA taxable wages in Part 2
Division 2 of this Act is to be read as a reference to WA taxable wages as
defined in this Act and WA taxable wages as defined in the corresponding
Pay-roll Tax Assessment Act.
(2) The employer need not pay the pay-roll tax which the employer is
otherwise liable to pay for the period, in accordance with subsection (1),
to the extent to which the employer has paid pay-roll tax under Part 2
Division 2 of the corresponding Pay-roll Tax Assessment Act for the
period.
”.
After section 20 the following section is inserted —
“
(1) If a group is, for a period, liable to pay pay-roll tax under both
Part 2 Division 3 of this Act and liable to pay pay-roll tax under
Part 2 Division 3 of the corresponding Pay-roll Tax Assessment Act
then, for the purposes of calculating the amount of pay-roll tax the group is
liable to pay, a reference to WA taxable wages in Part 2 Division 3 of
this Act (other than section 17(1) and (3)) is to be read as a references
to WA taxable wages as defined in this Act and WA taxable wages as defined in
the corresponding Pay-roll Tax Assessment Act.
(2) The members of a group need not pay the pay-roll tax which the group
is otherwise liable to pay for the period, in accordance with
subsection (1), to the extent to which the members of the group have paid
pay-roll tax under Part 2 Division 3 of the corresponding Pay-roll Tax
Assessment Act for the period.
”.
33. Section 29
modified
After section 29(1b) the following subsection is
inserted —
“
(1ba) If the employer or group is liable to pay pay-roll tax under both
this Act and the corresponding Pay-roll Tax Assessment Act then, in
subsection (1a), the expected pay-roll tax liability is the sum
of —
(a) the amount of expected pay-roll tax liability in subsection (1b)
of this Act; and
(b) the amount of expected pay-roll tax liability in section 29(1b)
of the corresponding Pay-roll Tax Assessment Act.
”.
After section 29 the following section is inserted in
Part 3 —
“
(1) In sections 26(1) and 29(9), a reference to WA taxable wages to
be specified in a return for a period is to be read as a reference to the sum
of —
(a) the amount of WA taxable wages to be specified in the return for that
period for the purposes of section 26(1) or 29(9) of this Act (which
ever is relevant); and
(b) the amount of WA taxable wages to be specified in a return for that
period for the purposes of section 26(1) or 29(9) of the corresponding
Pay-roll Tax Assessment Act (which ever is relevant).
(2) If a person has lodged a return relating to a period under
section 26(1) or 29(9) of the corresponding Pay-roll Tax Assessment
Act, the person need not lodge a return for that period under section 26(1)
or 29(9) of this Act.
”.
(1) The Glossary clause 1 is modified by inserting the following
definitions in their appropriate alphabetical positions —
“
Commonwealth Mirror Taxes Act means the Commonwealth
Places (Mirror Taxes) Act 1998;
corresponding Pay-roll Tax Act means the Pay-roll Tax
Act 2002 of Western Australia in its application as a law of Western
Australia;
corresponding Pay-roll Tax Assessment Act means the
Pay-roll Tax Assessment Act 2002 of Western Australia in its
application as a law of Western Australia;
”.
(2) The Glossary clause 1 is modified in the definition of
“employer” by inserting after “Western
Australia” —
“ or the Commonwealth ”.
(3) The Glossary clause 1 is modified in the definition of “WA
taxable wages” by deleting “in Western Australia”.
(4) The Glossary clause 2(1)(c) is modified by inserting after
“Western Australia” in both places where it occurs —
“ or the Commonwealth ”.
(5) The Glossary clause 4 is modified as follows:
(a) in subclause (1)(a) by inserting after
“State” —
“
(whether or not in Commonwealth places in that State) or wholly in
Western Australia (other than in Commonwealth places in Western
Australia)
”;
(b) by inserting after subclause (2) the following
subclause —
“
(3) In subclause (1)(a) and (b), a reference to Western Australia
(except the references inserted by the Commonwealth Places (Mirror Taxes)
(Modification of Applied Laws (WA)) Notice 2007 clause 35(5)(a)) is to
be read as referring only to Commonwealth places in Western Australia.
”.
5 The Revenue Laws Amendment (Tax Relief) Act 2004
s. 5(6) reads as follows:
(6) The amendments made by this section do not affect an exemption given
before the coming into operation of this section.
6 The Revenue Laws Amendment (Tax Relief) Act 2004
s. 15(7) reads as follows:
(7) The amendments made by this section do not affect an exemption given
before the coming into operation of this section.
7 On the date as at which this reprint was prepared, the
Pay-roll Tax Assessment Amendment Act 2010 Pt. 2 Div. 3 had not
come into operation. It reads as follows:
Division
3 — Amendments relating to grouping of
employers
20. Section 31
amended
In section 31(4) delete the passage that begins with
“section 38” and continues to the end of the subsection and
insert:
section 38.
21. Section 32
amended
Delete section 32(3) and (4) and insert:
(3) The Commissioner may exclude a person from a group in accordance with
section 38.
22. Section 33
amended
In section 33(7) delete “related corporation” and
insert:
related body corporate
23. Section 35
replaced
Delete section 35 and insert:
35A. Groups
arising from tracing of interests in corporations
(1) For the purposes of this section —
associated person means a person who is associated with
another person in accordance with any of the following —
(a) persons are associated persons if they are related persons;
(b) individuals are associated persons if they are partners in a
partnership;
(c) private companies are associated persons if common shareholders have a
majority interest in each private company;
(d) trustees are associated persons if any person is a beneficiary common
to the trusts (not including a public unit trust scheme) of which they are
trustees;
(e) a private company and a trustee are associated persons if a related
body corporate of the company is a beneficiary of the trust (not including a
public unit trust scheme) of which the trustee is a trustee;
entity means —
(a) a person; or
(b) 2 or more persons who are associated persons;
private company means a company that is not limited by
shares, or whose shares are not quoted on the Australian Stock Exchange or any
exchange of the World Federation of Exchanges;
related person means a person who is related to another
person in accordance with any of the following —
(a) individuals are related persons if —
(i) one is the spouse or de facto partner of the other; or
(ii) the relationship between them is that of parent and child, brothers,
sisters, or brother and sister;
(b) private companies are related persons if they are related bodies
corporate;
(c) an individual and a private company are related persons if the
individual is a majority shareholder or director of the company or of another
private company that is a related body corporate of the company;
(d) an individual and a trustee are related persons if the individual is a
beneficiary of the trust (not being a public unit trust scheme) of which the
trustee is a trustee;
(e) a private company and a trustee are related persons if the company, or
a majority shareholder or director of the company, is a beneficiary of the trust
(not being a public unit trust scheme) of which the trustee is a
trustee.
(2) An entity and a corporation form part of a group if the entity has a
controlling interest in the corporation.
(3) An entity has a controlling interest in a corporation if the
corporation has share capital and —
(a) the entity has a direct interest in the corporation the value of which
exceeds 50%; or
(b) the entity has an indirect interest in the corporation the value of
which exceeds 50%; or
(c) the entity has an aggregate interest in the corporation the value of
which exceeds 50%.
(4) The Commissioner may exclude an entity from a group in accordance with
section 38.
(1) An entity has a direct interest in a corporation
if —
(a) in the case of an entity that is a person — the person can,
directly or indirectly, exercise, control the exercise of, or substantially
influence the exercise of, the voting power attached to any voting shares issued
by the corporation; or
(b) in the case of an entity that is 2 or more persons who are associated
persons — each of the associated persons can, directly or indirectly,
exercise, control the exercise of, or substantially influence the exercise of,
the voting power attached to any voting shares issued by the
corporation.
(2) The value of the direct interest of the entity in the corporation is
the proportion (expressed as a percentage) of the voting power of all voting
shares issued by the corporation that —
(a) in the case of an entity that is a person — the person can
directly or indirectly exercise, control the exercise of, or substantially
influence the exercise of; or
(b) in the case of an entity that is 2 or more persons who are associated
persons — the associated persons can, if acting together, directly or
indirectly exercise, control the exercise of, or substantially influence the
exercise of.
(1) An entity has an indirect interest in a corporation if
the corporation is linked to another corporation (the directly controlled
corporation) in which the entity has a direct interest.
(2) A corporation is linked to a directly controlled corporation if the
corporation is part of a chain of corporations —
(a) that starts with the directly controlled corporation; and
(b) in which a link in the chain is formed if a corporation has a direct
interest in the next corporation in the chain.
(3) The value of the indirect interest of an entity in a corporation (an
indirectly controlled corporation) that is linked to a directly
controlled corporation is calculated by multiplying together the
following —
(a) the value of the direct interest of the entity in the directly
controlled corporation;
(b) the value of each direct interest that forms a link in the chain of
corporations by which the indirectly controlled corporation is linked to the
directly controlled corporation.
(4) If an entity has more than one indirect interest in a corporation, the
value of those interests is worked out under section 35D.
(1) An entity has an aggregate interest in a corporation
if —
(a) the entity has a direct interest and one or more indirect interests in
the corporation; or
(b) the entity has more than one indirect interest in the
corporation.
(2) The value of the aggregate interest of an entity in a corporation is
the sum of the following —
(a) the value of the direct interest (if any) of the entity in the
corporation;
(b) the value of each indirect interest of the entity in the
corporation.
24. Section 36
amended
(1) In section 36(3) delete the passage that begins with “Act
except” and continues to the end of the subsection and insert:
Act.
(2) After section 36(3) insert:
(4) The Commissioner may exclude a person from a group in accordance with
section 38.
25. Section 38
amended
Delete section 38(1) and insert:
(1) The Commissioner may exclude a person from a group under
section 31(4), 32(3), 35A(3) or 36(4) in relation to a business carried on
by the person if satisfied that the business is carried on independently of, and
is not connected with the carrying on of, a business carried on by any other
member of the group, having regard to —
(a) the nature and degree of ownership and control of the businesses;
and
(b) the nature of the businesses; and
(c) any other matters the Commissioner considers relevant.
After Schedule 1 clause 3 insert:
Division 2 — Provisions
for the Pay-roll Tax Assessment Amendment Act 2010 in relation to
grouping of employers
4. Exclusion,
from a group, in force before 1 July 2012
If the Commissioner has excluded a person from a group under
section 31(4) or 32(3) (as in force before 1 July 2012) and that
exclusion was in force immediately before 1 July 2012, that exclusion
has effect, according to its terms, on and after 1 July 2012, as if it
had been granted under Part 4 (as in force on and after
1 July 2012).
5. Exclusion,
from a group, granted on or after 1 July 2012
An exclusion of a person from a group under Part 4 (as in force on
and after 1 July 2012) cannot have effect before 1 July 2012
despite section 38(5).
6. Exclusion,
from a group, having effect before 1 July 2012
The Commissioner may, on and after 1 July 2012, exclude a
person from a group for a period that is before 1 July 2012 but not on
or after 1 July 2012, and may do so as if the Pay-roll Tax
Assessment Amendment Act 2010 Part 2 Division 3 had not come
into operation.
(1) In the Glossary clause 1 delete the definition of related
corporation.
(2) In the Glossary clause 1 insert in alphabetical order:
related body corporate has the meaning given in
section 9 of the Corporations Act;
Defined
Terms
[This is a list of terms defined and
the provisions where they are defined. The list is not part of the
law.]
Defined Term Provision(s)
2004/5 year 22A(1)
ABN Gl.
actual
value 9BB(2), Gl.
actuary Gl.
adoption leave 41A(1)
agent Gl.
annual
threshold amount Gl.
apportioned threshold amount Gl.
assessment
year Gl.
Australian jurisdiction Gl.
Australian superannuation
fund Gl.
business Gl.
calculation provision 22A(5)
charitable body or
organisation Gl.
Commonwealth income tax
provisions 9DD(1)
company Gl.
controlling
interest Gl.
corporation Gl.
Corporations Act Gl.
corresponding
law Gl.
defined benefit fund Gl.
defined superannuation
benefit Gl.
designated group
employer Gl.
DGE Gl.
director Gl.
employee 9CA
employer 9CA,
Gl.
employment agent Gl.
employment termination
payment 9EA(2)
exempt Gl.
expected pay-roll tax liability 28A(3),
29(1b)
FBT year Gl.
FBTA Act Gl.
first part of the tax
period 22A(4)(a)(i)
first period 22A(2)
fringe
benefit Gl.
group Gl.
GST Gl.
individual superannuation guarantee
shortfall Gl.
instrument 6D(1)
interstate non-group
employer Gl.
interstate taxable wages Gl.
ITA Act Gl.
local
company 9DH(1)
local non-group employer Gl.
maternity
leave 41A(1)
monthly threshold amount Gl.
motor vehicle
allowance Gl.
new rate 22A(2)
nominated deduction Gl.
non-group
employer Gl.
non-profit organisation Gl.
notional contribution 9CA
old
rate 22A(2)
option Gl.
paid Gl.
parental leave 41A(1)
part period
factor 22A(6)
pay Gl.
payable Gl.
pay-roll tax Gl.
pay-roll tax
Act Gl.
pay-roll tax rate Gl.
progressive return
period Gl.
provide Gl.
quarter 29(4d)
registered Gl.
registered
business address Gl.
related corporation Gl.
relevant
day 9DA(4)
relevant part period 22A(5)
remote
location Gl.
return Gl.
return period Gl.
second part of the tax
period 22A(4)(a)(ii)
second period 22A(2)
share Gl.
smaller group 36(1)
and (2), Gl.
specified exempt allowance Gl.
specified taxable
benefit Gl.
State Gl.
superannuation contribution 9CA
superannuation fund Gl.
Superannuation Guarantee Act Gl.
tax
period 22A(4)
taxes 42(2), 43(11), Gl.
tax-reducing
arrangement Gl.
termination
payment 9EA(2)
Territory Gl.
trustee Gl.
unused annual leave
payment 9EA(2)
unused long service leave
payment 9EA(2)
value Gl.
vesting day 9DB(2) and (3)
voting
share Gl.
WA fringe benefits Gl.
WA taxable wages 5(2),
Gl.
wages 9AA(1), Gl.