Income Tax Assessment Act 1936

Part IVAsection 260Income Tax Assessment Act'' 1936 (Cth)ITAA 1936
The Income Tax Assessment Act 1936 (colloquially known as ITAA36) is an act of the Parliament of Australia.wikipedia
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Income tax in Australia

income taxAustralian-resident shareholdersAustralian income tax system
It is one of the main statutes under which income tax is calculated.
The two statutes under which income tax is calculated are the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997; the former is gradually being re-written into the latter.

Income Tax Assessment Act 1997

ITAA 1997
The act is gradually being rewritten into the Income Tax Assessment Act 1997, and new matters are generally now added to the 1997 act.
The Act is a rewrite in plain English of the prior Income Tax Assessment Act 1936.

Mullens v Federal Commissioner of Taxation

Mullens v FCT
This was called the "choice principle" and it spawned Mullens v FCT (1976) which extended that to allow taxpayers to deliberately put themselves into circumstances described by the act (even if by unusual transactions) without coming under section 260.
The principal significance of the case today is its part in judicial interpretation of the section 260 anti-avoidance provisions of the Income Tax Assessment Act 1936.

Slutzkin v Federal Commissioner of Taxation

Slutzkin
The Mullens case, and the subsequent Slutzkin and Cridland (1977) decided from it, were in a sense the demise of section 260.
The principal interest in the case today is its part in judicial interpretation of the section 260 anti-avoidance provisions of the Income Tax Assessment Act 1936, and indirectly in overall dividend stripping operations of the time (insofar as action against the vendors' position failed).

Cridland v Federal Commissioner of Taxation

Cridland
The Mullens case, and the subsequent Slutzkin and Cridland (1977) decided from it, were in a sense the demise of section 260.
He hit upon a scheme to access the income averaging provisions of division 16 of the Income Tax Assessment Act 1936 (ITAA).

Capital gains tax in Australia

capital gains taxbelowcapital gains
Making a declaration stopped an investor deciding "after the fact" that a loss was "trading" but a gain was "investing" (tax-free prior to capital gains tax).
Prior to the introduction of capital gains tax in 1985, section 52 of the ITAA 1936 required taxpayers to declare (on their next return) assets they had acquired for trading.

Statute

statutorystatutesAct
The Income Tax Assessment Act 1936 (colloquially known as ITAA36) is an act of the Parliament of Australia.

Parliament of Australia

Australian ParliamentFederal ParliamentParliament
The Income Tax Assessment Act 1936 (colloquially known as ITAA36) is an act of the Parliament of Australia.

Adrian Knox

Sir Adrian KnoxKnoxChief Justice Knox
The wording was notably broad; as early as 1921, Chief Justice Knox remarked on that (referring to the 1915 act), saying "The section, if construed literally, would extend to every transaction whether voluntary or for value which had the effect of reducing the income of any taxpayer."

Judicial Committee of the Privy Council

Privy CouncilJudicial CommitteeJudicial Committee of the British Privy Council
In Newton v FCT (1958), on appeal to the Privy Council, a kind of "predication" test was described.

Tom Denning, Baron Denning

Lord DenningLord Denning MRDenning LJ
Lord Denning in his judgement said: you must be able to predicate – by looking at the overt acts by which it was implemented – that it was implemented in that particular way so as to avoid tax.

Frank Kitto

KittoSir Frank KittoFrank Walters Kitto
Earlier, in the Newton case (in the High Court in 1957), Justice Kitto had given his now often quoted warning about section 260: "Section 260 is a difficult provision, inherited from earlier legislation, and long overdue for reform by someone who will take the trouble to analyse his ideas and define his intentions with precision before putting pen to paper."

Interest

simple interestrate of interestinterest rates

Australian dividend imputation system

The actual law is complex, the core is in the Income Tax Assessment Act 1936 and other elements are in the Income Tax Assessment Act 1997.

Film and television financing in Australia

10BAProducer OffsetAustralian film tax exemption scheme 10BA
Division 10BA (1981) of the Income Tax Assessment Act 1936 allowed investors a 150% tax concession on their investment at risk.

Cherry-picking tax avoidance

Under section 82AAE (now repealed) of the Income Tax Assessment Act 1936 such contributions were tax deductible (to a limit of 5% of initial salary or $400, whichever was greater).

Commissioner of Taxation v La Rosa

However, acting "as a matter of procedural fairness as the taxpayer had little tax knowledge and was representing himself", the tribunal concluded that the stolen money met the general deduction provisions in the Income Tax Assessment Act 1936 (ITAA36), and thus could be deducted from La Rosa's taxable income.

Joseph Lyons

LyonsJ.A. LyonsJoseph Aloysius Lyons
Other legislative accomplishments of the Lyons Government include the creation of the Australian Broadcasting Commission (ABC) in 1932 and the Income Tax Assessment Act 1936.

Negative gearing in Australia

It is assumed this applied to losses as well as income, but this is unclear in the Income Tax Assessment Act 1936.