The Issues Log

Issue: CX 17(4), CX 16(4)

Submission Number	105
Submitter	McIntyre Dick & Partners Limited
Section / Provision Income Tax Act 2007	CX 17(4)
Section / Provision Income Tax Act 2004	CX 16(4)
Date Received	30/04/2009
Description of issue	Section CX 16(4)(a) of the Income Tax Act 2004 had \"; and\" replaced with \":\". When the section had \"; and\" it meant that both subparagphs (a) and (b) needed to be satisfied. By replacing \"; and\" with \":\" means that only one of paragraphs (a) or (b) need to be satisfied. This error flows through to the Income Tax Act 2007. Please indicate if urgency is required and give reasons: Urgency is required because if the interpretation under the 2004 or 2007 Act is relied upon it could treat some benefits as dividends, and possibly exempt dividends, instead of Fringe Benefits as previously.
Section / Provision Income Tax Act 1994
Status	Finalised
Outcome	The Panel concludes there is an unintended legislative change arising from the Annual rates & Venture Capital Act 2004 and we recommend retrospective amendment with appropriate savings provision.