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Income Tax (Budget Amendment) Act 2004

FIJI ISLANDS

INCOME TAX (BUDGET AMENDMENT) ACT 2004

ARRANGEMENT OF SECTIONS

1. Short title and commencement
2. Interpretation
3. Normal Tax
4. Non-resident miscellaneous withholding tax
5. Resident interest withholding tax
6. Definition of total income
7. Income deemed to be derived from Fiji
8. When the income is deemed to have been accrued or received
9. Section 16B inserted
10. Expenses deductible
11. Export Income Deduction
12. Allowances for wife
13. Persons chargeable in the case of a trust or settlement or income paid to a beneficiary
14. Section 74A inserted
15. Section 75A inserted
16. Section 77A inserted
17. Penalties for not making return
18. Extent of relief under Double Taxation Agreement
19. Contracts for evidence of tax
20. Rates of normal tax
21. Repeals and transitional
22. Tenth Schedule added

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ACT NO. 3 OF 2004

I assent

J.I. ULUIVUDA

President

[9 March 2004]

AN ACT

FOR AN ACT TO AMEND THE INCOME TAX ACT

ENACTED by the Parliament of the Fiji Islands

Short title and commencement

1. (1) This Act may be cited as the Income Tax (Budget Amendment) Act 2004 and is deemed to have come into force on 1st January 2004.

(2) In this Act principal Act means the Income Tax Act (Cap. 201).

Interpretation

2. Section 2 of the principal Act is amended-

(a) by renumbering the existing provision as subsection (1); and

(b) by adding the following subsection-

"(2) For the purposes of this Act, a trust includes the estate of a deceased person or settlement to which a beneficiary is presently entitled but does not include-

(a) a trust arising from bankruptcy;

(b) a unit trust as defined in the Unit Trusts Act;

(d) any trust the income of which is exempted from taxation under this Act or any other written law; or

(e) an approved superannuation fund under section 110."

Normal Tax

3. Section 7 of the principal Act is amended in subsection (1) by adding after paragraph (f) the following paragraph-

"(g) a trustee in respect to the income of the trust, as calculated under subsection (1) or (3) of section 42, for the year of assessment."

Non-resident miscellaneous withholding tax

4. Section 8A of the principal Act is amended in subsection 2(b) by deleting the following-

", to the extent that such payment or credit does not constitute reimbursement of expenditure, that is-

(i) of a kind that is deductible under this Act; and

(ii) incurred in relation to the payment or credit by the person to whom the payment or credit is made."

Resident interest withholding tax

5. Section 9A of the principal Act is amended-

(a) in subsection (2) by repealing paragraph (d) and substituting the following paragraph:-

"(d) in the year of assessment 2004 at the rate of 31%."; and

(b) in subsection (14)-

(i) by deleting "and" at the end of paragraph (b);

(ii) by replacing the full stop with a semi-colon at the end of paragraph (c); and

(iii) by inserting after paragraph (c), the following paragraph

"(d) any other information required by the Commissioner.".

Definition of total income

6. Section 11 of the principal Act is amended by repealing paragraph (p) and substituting the following paragraph

"Income from trusts

(p) any income from a trust, including such income which the beneficiary is deemed to be presently entitled under section 14;"

Income deemed to be derived from Fiji

7. Section 14 the principal Act is amended by repealing paragraph (b).

When income is deemed to have accrued or to have been received

8. Section 15 of the principal Act is amended-

(a) in subsection (4), by inserting ", either at the time it is made or any later time," after "stipulation"; and

(b) in subsection (5), by inserting ", either at the time it is made or any later time," after "condition" in the first sentence.

Section 16B inserted

9. The principal Act is amended by adding after section 16A, the following section -

"Binding Rulings

16B. The Commissioner may issue binding rulings in accordance with the Tenth Schedule."

Expenses deductible

10. Section 21 of the principal Act is amended in subsection (1) -

^{(a) by deleting "2003" in paragraph (r)(i) and substituting "2004";}

(b) by replacing the full stop with a semi-colon at the end of paragraph (u); and

"(v) two times the amount of cash donation exceeding $100,000 made by a taxpayer between 1stJanuary 2004 and 31stDecember 2006 to a Sports Fund for the purposes of sports development in the Fiji Islands;

(w) one and one half times of the cost of vehicle purchased for the purpose of donation by a taxpayer to the Fiji Police Force: Provided that the maximum cost of the vehicle on which claims are to be made shall not exceed $50,000;

(x) one and one half times the amount of cost, associated with preparations for listing on the South Pacific Stock Exchange incurred by a company. For the purposes of this paragraph, the following may constitute as costs associated with listing on the South Pacific Stock Exchange: -

(i) investment advisory fees including advice on-

(A) suitability for listing;

(B) business establishment, business re-organisation and restructuring;

(D) due diligence;

(E) securities valuation;

(F) preparation of offer documents; and

(G) road show costs;

(ii) legal fees involving cost associated with vetting of offer documents and general advice during restructure and offer and listing on the stock exchange;

(iii) accounting fees for services relating to preparation of independent accountants reports and financial statement summaries;

(iv) company administration and management cost including-

(A) stamp duties;

(B) printing costs relating to the prospectus;

(D) South Pacific Stock Exchange application fee;

(E) first year listing fee;

(F) costs associated with business establishment, business re-organisation and restructuring;

(iv) underwriting fees;

(v) brokers fees for public or private placement of the securities; or

(vi) costs of any other special reports required for floating and listing the company.".

Export income deduction

11. Section 21B of the principal Act is amended in subsection (3) by inserting the word "net" before profits.

Allowances for wife

12. Section 25 of the principal Act is amended-

(a) by replacing the existing section heading with "Allowances for wife, widow and widower"; and

(b) in subsection (1)(b) by deleting "$1,000" and substituting "$1,200".

Persons chargeable in the case of a trust or settlement or income paid to a beneficiary

13. Section 42 of the principal Act is amended -

(a) in subsection (1) by deleting "income accumulating to the estate of a deceased person, a trust or settlement" and substituting "net income of a trust, estate of a deceased person or settlement to which no beneficiary is presently entitled, other than a beneficiary who is under a legal disability.";

(b) in subsection (2) by deleting "Sums regarded as income of a beneficiary of the estate of a deceased person, a trust or settlement" and substituting "The net income of a trust to which a beneficiary who is not under a legal disability is presently entitled"; and

(c) in subsection (3) by deleting "Income derived by or accruing to a minor may" and substituting "Net income of a trust to which a beneficiary who is under a legal disability is presently entitled shall".

Section 74A inserted

14. The principal Act is amended by adding after section 74, the following new section-

"Directors of a company may be personally sued

74A. Where a company that becomes insolvent or liquidated owes Pay As You Earn or Provisional Tax and all associated penalties, each person who is a director of the company is liable to pay to the Commissioner such tax owed and all the associated penalties."

Section 75A inserted

15. The principal Act is amended by adding after section 75, the following section-

"Distrain for unpaid tax

75A. The Commissioner may levy distress on the goods, other than real property, and chattels of any taxpayer who refuses or fails to pay any tax payable or any other amount recoverable under this Act and for the disposal of any such goods or chattels by sale or otherwise to recover the amount of the tax payable by the taxpayer and any other amount recoverable including the costs and expenses of the disposal."

Section 77A inserted

16. The principal Act is amended by adding after section 77, the following section -

"Departure prohibition orders

77A (1) Notwithstanding any other provision of this Act, if the Commissioner has the reason to believe that a taxpayer might leave the Fiji Islands without paying tax assessed upon him, then, whether or not the due date for payment of the tax has passed, the Commissioner may issue a departure prohibition order, in writing stating the-

(a) name and address of the taxpayer; and

(b) amount of unpaid assessed tax.

(2) A departure prohibition order has effect throughout the Fiji Islands, including aboard any vessel or aircraft within the Fiji Islands.

(3) If a departure prohibition order is issued in respect of a taxpayer, the Commissioner of Police and the Director of Immigration must each exercise the powers they lawfully possess, or cause an officer under their direction to exercise such powers, so far as is necessary to prevent the taxpayer named in the order from departing the Fiji Islands, including the removal and retention of any passport, identity card, visa or other travel document authorising the taxpayer to leave the Fiji Islands.

(4) A copy of a departure prohibition order issued by the Commissioner in respect of a taxpayer must, as soon as practicable, be served upon the taxpayer and upon the Commissioner of Police and the Director of Immigration.

(5) The Commissioner may revoke a departure prohibition order if the taxpayer-

(a) pays the amount of unpaid assessed tax; or

(b) provides or arranges for security be given to the satisfaction of the Commissioner for payment of the amount of unpaid assessed tax.

(6) A departure prohibition order is valid for a period of 3 years from the date of issue and the Commissioner upon review may extend or revoke the period.

(7) No proceedings, either criminal or civil, may be instituted or maintained, for anything lawfully done under this section, against the Commissioner or any other officer directed or authorised to act under this section.".

Penalties for not making return

17. The principal Act is amended by repealing section 94 and substituting the following section-

"Penalties for failing to lodge returns

94. (1) A person who fails to lodge a return of income under section 44, 45, 46 or 47 is liable to pay a penalty, calculated as follows-

(a) $2 for each day, or part of a day, if the failure continues after the due lodgement date to a date up to 3 months after the due lodgement date;

(b) $7 for each day, or part of a day, if the failure continues after 3 months to a date up to 6 months after 3 months specified under paragraph (a); and

(c) $15 for each day, or part of a day, if the failure continues after 6 months specified in paragraph (b) until the returns are lodged.

(2) A person who fails to lodge a return of income under section 44, 45, 46 or 47 commits an offence and is liable -

(a) to a fine of $400 and treble the amount of tax for which the person is liable under this Act for the year of assessment in respect of or during which the offence was committed; or

(b) to imprisonment for 6 months.".

Extent of relief under Double Taxation Agreement

18. Section 103 of the principal Act is amended by repealing subsection (2) and replacing the following new subsection:-

"(2) For the purposes of this Act, overseas tax means tax under the law of another country, and foreign tax credit has a corresponding meaning."

Contracts for avoidance of tax

19. The principal Act is amended by repealing section 108 and substituting the following section-

"Schemes to reduce income tax

Interpretation

108. (1) In this section, unless the context otherwise requires -

"foreign tax credit" means a credit within the meaning of section 103;

"scheme" means-

(i) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; and

(ii) any scheme, plan, proposal, action, course of action or course of conduct;

"taxpayer" includes a taxpayer in the capacity of a trustee.

(2) The definition of "taxpayer" in subsection (1) shall not be taken to affect in any way the interpretation of that expression where it is used in this Act other than this subsection.

(3) The reference in the definition of ``scheme'' in subsection (1) to a scheme, plan, proposal, action, course of action or course of conduct shall be read as including a reference to a unilateral scheme, plan, proposal, action, course of action or course of conduct, as the case may be.

(4) A reference in this section to the carrying out of a scheme by a person shall be read as including a reference to the carrying out of a scheme by a person together with another person or other persons.

(5) A reference in this section to a scheme or a part of a scheme being entered into or carried out by a person for a particular purpose shall be read as including a reference to the scheme or the part of the scheme being entered into or carried out by the person for 2 or more purposes of which that particular purpose is the dominant purpose.

Operation of this subsection

(6) No other provision of this Act shall be taken to limit the operation of this section.

(7) Where a provision of this Act other than this subsection and subsections (6) and (8) is expressed to have effect where a deduction would be allowable to a taxpayer but for or apart from a provision or provisions of this Act, the reference to that provision or to those provisions, as the case may be, shall be read as including a reference to subsection (6).

(8) Where a provision of this Act other than this subsection and subsections (6) and (8) is expressed to have effect where a deduction would otherwise be allowable to a taxpayer, that provision is deemed to be expressed to have effect where a deduction would, but for subsection (6), be otherwise allowable to the taxpayer.

Tax benefits

(9) Subject to this subsection and subsections (10), (11) and (12), a reference in this section to the obtaining by a taxpayer of a tax benefit in connection with a scheme shall be read as a reference to-

(a) an amount not being included in the total income of the taxpayer of a year of income where that amount would have been included, or might reasonably be expected to have been included, in the total income of the taxpayer of that year of income if the scheme had not been entered into or carried out; or

(b) a deduction being allowable to the taxpayer in relation to a year of income where the whole or a part of that deduction would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out; or

(c) a foreign tax credit being allowable to the taxpayer where the whole or a part of that foreign tax credit would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; and, for the purposes of this section, the amount of the tax benefit shall be taken to be -

(i) in a case to which paragraph (a) applies - the amount referred to in that paragraph; and

(ii) in a case to which paragraph (b) applies - the amount of the whole of the deduction or of the part of the deduction, as the case may be, referred to in that paragraph; and

(iii) in a case where paragraph (c) applies - the amount of the whole of the foreign tax credit or of the part of the foreign tax credit, as the case may be, referred to in that paragraph.

(10) A reference in this section to the obtaining by a taxpayer of a tax benefit in connection with a scheme shall be read as not including a reference to:

(a) the total income of the taxpayer of a year of income not including an amount that would have been included, or might reasonably be expected to have been included, in the total income of the taxpayer of that year of income if the scheme had not been entered into or carried out where -

(i) the non-inclusion of the amount in the total income of the taxpayer is attributable to the making of an agreement, choice, declaration, election or selection, the giving of a notice or the exercise of an option expressly provided for by this Act; and

(ii) the scheme was not entered into or carried out by any person for the purpose of creating any circumstance or state of affairs the existence of which is necessary to enable the declaration, agreement, election, selection, choice, notice or option to be made, given or exercised, as the case may be; or

(b) a deduction being allowable to the taxpayer in relation to a year of income the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer in relation to that year of income if the scheme had not been entered into or carried out where:

(i) the allowance of the deduction to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and

(c) a foreign tax credit being allowable to the taxpayer the whole or a part of which would not have been, or might reasonably be expected not to have been, allowable to the taxpayer if the scheme had not been entered into or carried out, where:

(i) the allowance of the foreign tax credit to the taxpayer is attributable to the making of a declaration, agreement, election, selection or choice, the giving of a notice or the exercise of an option by any person, being a declaration, agreement, election, selection, choice, notice or option expressly provided for by this Act; and

(11) A reference in this section to the obtaining by a taxpayer of a tax benefit in connection with a scheme is to be read as not including a reference to the total income of the taxpayer of a year of income not including an amount that would have been included, or might reasonably be expected to have been included, in the total income of the taxpayer of that year of income if the scheme had not been entered into or carried out where the scheme consisted solely of the making of the agreement or election.

(12) For the purposes of subparagraph (i) of subsection (10)(a), subparagraph (ii) of subsection (10)(b) and subparagraph (i) of subsection (10)(c);

(a) the non-inclusion of an amount in the total income of a taxpayer; or

(b) the allowance of a deduction to a taxpayer; or

is taken to be attributable to the making of a declaration, election, agreement or selection, the giving of a notice or the exercise of an option where, if the declaration, election, agreement, selection, notice or option had not been made, given or exercised, as the case may be:

(d) the amount would have been included in that total income; or

(e) the deduction would not have been allowable; or

(f) the foreign tax credit would not have been allowable.

Withholding tax avoidance

(13) This subsection and subsection (14) apply in relation to a particular amount if a taxpayer is not liable to pay withholding tax on an amount where that taxpayer would have, or could reasonably be expected to have, been liable to pay withholding tax on the amount if a scheme had not been entered into or carried out.

(14) For the purposes of this section, if this subsection and subsection (14) apply in relation to an amount, the taxpayer is taken to have obtained a tax benefit in connection with the scheme of an amount equal to the amount mentioned in subsection (13).

Schemes to which section applies

(15) This section applies to any scheme that has been or is entered into after 31 December 2003, and to any scheme that has been or is carried out or commenced to be carried out after that date (other than a scheme that was entered into on or before that date), whether the scheme has been or is entered into or carried out in Fiji or outside Fiji or partly in Fiji and partly outside Fiji, where-

(a) a taxpayer (in this section referred to as the relevant taxpayer) has obtained, or would but for subsections (20) to (35) obtain, a tax benefit in connection with the scheme; and

(b) having regard to-

(i) the manner in which the scheme was entered into or carried out;

(ii) the form and substance of the scheme;

(iii) the time at which the scheme was entered into and the length of the period during which the scheme was carried out;

(iv) the result in relation to the operation of this Act that, but for this section, would be achieved by the scheme;

(v) any change in the financial position of the relevant taxpayer that has resulted, will result, or may reasonably be expected to result, from the scheme;

(vi) any change in the financial position of any person who has, or has had, any connection (whether of a business, family or other nature) with the relevant taxpayer, being a change that has resulted, will result or may reasonably be expected to result, from the scheme;

(vii) any other consequence for the relevant taxpayer, or for any person referred to in subparagraph (vi), of the scheme having been entered into or carried out; and

(viii) the nature of any connection (whether of a business, family or other nature) between the relevant taxpayer and any person referred to in subparagraph (vi),

it would be concluded that the person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for the purpose of enabling the relevant taxpayer to obtain a tax benefit in connection with the scheme or of enabling the relevant taxpayer and another taxpayer or other taxpayers each to obtain a tax benefit in connection with the scheme (whether or not that person who entered into or carried out the scheme or any part of the scheme is the relevant taxpayer or is the other taxpayer or one of the other taxpayers).

Stripping of company profits

(16) Where-

(a) as a result of a scheme that is, in relation to a company-

(i) a scheme by way of or in the nature of dividend stripping; or

(ii) a scheme having substantially the effect of a scheme by way of or in the nature of a dividend stripping,

any property of the company is disposed of;

(b) in the opinion of the Commissioner, the disposal of that property represents, in whole or in part, a distribution (whether to a shareholder or another person) of profits of the company (whether of the accounting period in which the disposal occurred or of any earlier or later accounting period);

(c) if, immediately before the scheme was entered into, the company had paid a dividend out of profits of an amount equal to the amount determined by the Commissioner to be the amount of profits the distribution of which is, in his opinion, represented by the disposal of the property referred to in paragraph (a), an amount (in this subsection and subsections (17) to (19) referred to as the notional amount) would have been included, or might reasonably be expected to have been included, by reason of the payment of that dividend, in the total income of a taxpayer of a year of income; and

(d) the scheme has been or is entered into after 31 December 2003, whether in Fiji or outside Fiji, the following provisions have effect;

(e) the scheme shall be taken to be a scheme to which this section applies;

(f) for the purposes of subsections (20) to (35), the taxpayer shall be taken to have obtained a tax benefit in connection with the scheme that is referable to the notional amount not being included in the total income of the taxpayer of the year of income; and

(g) the amount of that tax benefit shall be taken to be the notional amount.

(17) Without limiting the generality of subsection (16), a reference in that subsection to the disposal of property of a company shall be read as including a reference to-

(a) the payment of a dividend by the company;

(b) the making of a loan by the company (whether or not it is intended or likely that the loan will be repaid);

(d) any transaction having the effect, directly or indirectly, of diminishing the value of any property of the company.

(18) Subsection (17) applies-

(a) to a non-share equity interest in the same way as it applies to a share; and

(b) to an equity holder in the same way as it applies to a shareholder; and

(19) In subsection (17), property includes a chose in action and also includes any estate, interest, right or power, whether at law or in equity, in or over property.

Cancellation of tax benefits etc.

(20) Where a tax benefit has been obtained, or would but for this subsection and subsections (20) to (35) be obtained, by a taxpayer in connection with a scheme to which this section applies, the Commissioner may-

(a) in the case of a tax benefit that is referable to an amount not being included in the total income of the taxpayer of a year of income - determine that the whole or a part of that amount shall be included in the total income of the taxpayer of that year of income; or

(b) in the case of a tax benefit that is referable to a deduction or a part of a deduction being allowable to the taxpayer in relation to a year of income - determine that the whole or a part of the deduction or of the part of the deduction, as the case may be, shall not be allowable to the taxpayer in relation to that year of income; or

(c) in the case of a tax benefit that is referable to a foreign tax credit, or a part of a foreign tax credit, being allowable to the taxpayer - determine that the whole or a part of the foreign tax credit, or the part of the foreign tax credit, as the case may be, is not to be allowable to the taxpayer;

and, where the Commissioner makes such a determination, he shall take such action as he considers necessary to give effect to that determination.

(21) Where the Commissioner determines under subsection (20) that an amount is to be included in the total income of a taxpayer of a year of income, that amount shall be deemed to be included in that total income by virtue of such provision of this Act as the Commissioner determines.

(22) Where a tax benefit has been obtained, or would but for subsections (20) to (35) (including this subsection) be obtained, by a taxpayer in connection with a scheme to which this section applies:

(a) the Commissioner may determine that the taxpayer is subject to withholding tax under this Act on the whole or part of that amount; and

(b) if the Commissioner makes such a determination, he or she must take such action as he or she considers necessary to give effect to that determination.

(23) A determination under subsection (20) or (22) must be in writing.

(24) Notice of the determination must be given to the taxpayer and, in the case of a determination under subsection (22), to the person who paid the amount.

(25) More than one determination may be included in the same notice.

(26) A failure to comply with subsection (24) does not affect the validity of a determination.

(27) If the Commissioner makes a determination under subsection (22), the amount that the Commissioner determines is taken to be subject to withholding tax is taken to have been subject to withholding tax at all times by virtue of such provision under this Act as the Commissioner determines.

(28) If the taxpayer is dissatisfied with a determination under subsection (22), the taxpayer may object to it in the manner set out in this Act.

(29) Where the Commissioner has made a determination under subsection (20) or (22) in respect of a taxpayer in relation to a scheme to which this section applies, the Commissioner may, in relation to any taxpayer (in this subsection referred to as the relevant taxpayer)-

(a) if, in the opinion of the Commissioner-

(i) there has been included, or would but for this subsection be included, in the total income of the relevant taxpayer of a year of income an amount that would not have been included or would not be included, as the case may be, in the total income of the relevant taxpayer of that year of income if the scheme had not been entered into or carried out; and

(ii) it is fair and reasonable that that amount or a part of that amount should not be included in the total income of the relevant taxpayer of that year of income,

determine that that amount or that part of that amount, as the case may be, should not have been included or shall not be included, as the case may be, in the total income of the relevant taxpayer of that year of income; or

(b) if, in the opinion of the Commissioner-

(i) an amount would have been allowed or would be allowable to the relevant taxpayer as a deduction in relation to a year of income if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, but for this subsection, be allowable, as the case may be, as a deduction to the relevant taxpayer in relation to that year of income; and

(ii) it is fair and reasonable that that amount or a part of that amount should be allowable as a deduction to the relevant taxpayer in relation to that year of income,

determine that that amount or that part, as the case may be, should have been allowed or shall be allowable, as the case may be, as a deduction to the relevant taxpayer in relation to that year of income; or

(i) an amount would have been allowed, or would be allowable, to the relevant taxpayer as a foreign tax credit if the scheme had not been entered into or carried out, being an amount that was not allowed or would not, apart from this subsection, be allowable, as the case may be, as a foreign tax credit to the relevant taxpayer; and

(ii) it is fair and reasonable that the amount, or a part of the amount, should be allowable as a foreign tax credit to the relevant taxpayer;

determine that that amount or that part, as the case may be, should have been allowed or is allowable, as the case may be, as a foreign tax credit to the relevant taxpayer; and the Commissioner shall take such action as he considers necessary to give effect to any such determination.

(30) Where the Commissioner makes a determination under subsection (29) by virtue of which an amount is allowed as a deduction to a taxpayer in relation to a year of income, that amount shall be deemed to be so allowed as a deduction by virtue of such provision of this Act as the Commissioner determines.

(31) Where, at any time, a taxpayer considers that the Commissioner ought to make a determination under subsection (29) in relation to the taxpayer in relation to a year of income, the taxpayer may post to or lodge with the Commissioner a request in writing for the making by the Commissioner of a determination under that subsection.

(32) The Commissioner shall consider the request and serve on the taxpayer, by post or otherwise, a written notice of his decision on the request.

(33) If the taxpayer is dissatisfied with the Commissioner's decision on the request, the taxpayer may object to it in the manner set out in this Act.

(34) Nothing in this Act prevents the amendment of an assessment at any time before the expiration of 6 years after the date on which tax became due and payable under the assessment if the amendment is for the purposes of giving effect to subsection (20).

(35) Nothing in this Act prevents the amendment of an assessment at any time if the amendment is for the purpose of giving effect to subsection (29).".

Rates of normal tax

20. The Fourth Schedule to the principal Act is amended -

(a) by replacing the titles headings for Tables A, B and C with the following-

"A. RESIDENT INDIVIDUALS AND RESIDENT INDIVIDUAL TRUSTEES";

"B. NON-RESIDENT INDIVIDUALS AND NON-RESIDENT INDIVIDUAL TRUSTEES"; and

"C. COMPANIES (INCLUDING COMPANIES ACTING AS TRUSTEES)".

(b) by repealing Tables A4, B4 and C4 and substituting the following tables-

"Table A4 Year of assessment 2004

Chargeable income Tax payable

$ $

0- 7,500 Nil

7,501-10,000 15% of excess over $7,500

10,001-20,000 375 + 25% of excess over $10,000

20,001 + 2,875 + 31% of excess over $20,000

Table B4 Year of assessment 2004

Chargeable income Tax payable

$ $

0-7,500 20% of excess over $7,500

7,501-10,000 1,500 + 25% of excess over $7,500

10,001-20,000 2,125 + 30% of excess over $10,000

20,001 + 5,125 + 31% of excess over $20,000

Table C4 Year of assessment 2004

(a) Every company, other than companies to which paragraph (b), (c) or (d) applies 31%

(b) Mutual insurance companies in respect of life insurance business 30%

(c) Non-resident or non-mutual insurance companies to the extent that the income of their life insurance businesses is deemed to be mutual under section 37(1) 30%

(d) Non-resident shipping companies 2%."

Repeals and transitional

21. (1) The Third, Fifth and Seventh Schedules to the principal Act are repealed.

(2) Notwithstanding subsection (1), any incentive or concession granted under the repealed Schedules before the commencement of this Act shall continue as if those Schedules had not been repealed.

(3) For the purposes of section 16B, the Commissioner shall, with effect from 1^st January 2004, issue binding rulings in relation to the Film-Making and Audio Visual incentives as set out in the Sixth Schedule.

Tenth Schedule added

22. The principal Act is amended by inserting after the Ninth Schedule the following Schedule-

"TENTH SCHEDULE

BINDING RULINGS

PART 1 - GENERAL

1-5 Purpose of this Schedule

(1) The purpose of this Schedule is to:

(a) provide taxpayers with certainty about the way the Commissioner will apply eligible taxation laws; and

(b) help taxpayers to meet their obligations under those laws,

by enabling the Commissioner to issue binding rulings that will bind the Commissioner on the application of those laws.

(2) In enabling the Commissioner to issue binding rulings the Schedule also recognises:

(a) the importance of collecting the taxes imposed by Parliament;

(b) the need for full and accurate disclosure by taxpayers who seek to obtain binding rulings; and

(c) the need for the Commissioner not to provide or to be seen to be providing commercial advice or advice regarding the commercial viability of any arrangements the subject of any binding ruling.

1-10 Interpretation

In this Schedule:

arrangement means:

(a) scheme, plan, action, proposal, course of action, course of conduct, transaction, agreement, understanding, promise or undertaking; or

(b) part of an arrangement.

applicant means a person applying for a binding ruling.

binding ruling means a product ruling or a status ruling.

consumer means a party to the arrangement who is not the applicant.

discretion, in relation to the exercise of the Commissioners discretion under an eligible taxation law includes -

(a) the exercising of a power by the Commissioner;

(b) the refusal or failure to exercise a power by the Commissioner;

(d) the refusal or failure to form an opinion by the Commissioner;

(e) the attaining by the Commissioner of a state of mind;

(f) the refusal or failure to attain a state of mind by the Commissioner;

(g) the making of a determination by the Commissioner; and

(h) the refusal or failure to make a determination by the Commissioner.

eligible taxation law means any provision:

(a) of the Sixth Schedule to the Income Tax Act (Cap. 201) and all subsidiary legislation made in relation to the Sixth Schedule to the Income Tax Act (Cap. 201);

(b) of the Income Tax Act (Cap. 201) and all subsidiary legislation made in relation to the Income Tax Act (Cap. 201) (other than a provision specified in subparagraph (a)) specified in the regulations; and

non-application of a binding ruling form means a form approved by the Commissioner to be the non-application of a binding ruling form.

product ruling means a binding ruling made under Part 3.

status ruling means a binding ruling made under Part 5.

1-12 Commencement of arrangements

For the purposes of this Schedule, an arrangement is taken to begin to be carried out when a contract requiring an arrangement to be carried out is entered into.

1-15 Taxation laws in respect of which binding rulings may be made

(1) The Commissioner may only make a binding ruling in relation to eligible taxation laws.

(2) For the avoidance of doubt, the Commissioner under subparagraph (1) may make a binding ruling-

(a) on any provision of any eligible taxation law;

(b) on how the Commissioner will exercise his or her discretion under any provision of any eligible taxation law; and

(c) on the application or otherwise of a general anti-avoidance provision or specific anti-avoidance provisions of any eligible taxation law,

provided the primary or main provisions the binding ruling relates to are eligible taxation laws

(3) Despite subparagraph (1), the Commissioner may not make a binding ruling on any provision-

(a) specified in the regulations made in relation to this subparagraph; or

(b) that authorises or requires the Commissioner to:

(i) impose or remit a penalty; or

(ii) inquire into the correctness of any return or other information supplied by any person; or

(iii) prosecute any person; or

(iv) recover any debt owing by any person.

1-20 Fees

(1) The fees payable in respect of applications for binding rulings are to be specified by the Commissioner by giving notice in a publication of the Commissioner.

(2) Any notice made by the Commissioner under subparagraph (1) may:

(a) specify the persons by whom any fees are payable;

(b) prescribe specific fees for specific work or services;

(d) allow the Commissioner to waive, in whole or in part, any fees that are payable.

1-25 Commissioner may not issue binding ruling to applicant with outstanding debts

(1) The Commissioner may refuse to issue a binding ruling to an applicant with an outstanding debt that relates to an earlier binding ruling application.

(2) An applicant has an outstanding debt if the applicant has not paid, on or before 30 days after the date stated in an invoice sent by the Commissioner, the amount stated in the invoice.

1-27 Regulations

The Minister is empowered to make regulations with respect to:

(a) the definition of eligible taxation law under paragraph 1-10; and

(b) provisions in respect of which binding rulings may not be made under subparagraph 1-15(3).

1-30 Effect of legislative change on binding ruling

A binding ruling does not apply from the date a eligible taxation law is repealed or amended to the extent that the repeal or amendment changes the way the eligible taxation law applies in the binding ruling.

1-35 Effect of minor error on binding ruling

(1) The Commissioner does not have to withdraw and reissue a new binding ruling to correct a typographical or a minor error if the correction does not change the meaning of the binding ruling.

(2) A binding ruling with a typographical or a minor error that is not withdrawn and reissued remains valid.

1-40 Applications for binding rulings not to affect obligations and powers

The fact that there has been an application for a binding ruling does not affect a person's obligation to provide any return, provide any information, make any payment, or do any other act, or the Commissioners power to make any assessment or additional assessment.

1-45 Application of penalties

(1) The Commissioner must take into account a binding ruling penalty factor in exercising any discretion the Commissioner may have in relation to the imposition of, the extent of the imposition of or the extent of a remission of a penalty.

(2) A binding ruling penalty factor under subparagraph (1) exists in relation to a person when:

(a) a binding ruling has been issued;

(b) the binding ruling applies to a person;

(c) the person has not notified the Commissioner using a non-application of a binding ruling form under paragraph 3-9 or paragraph 5-35 that they are not applying the binding ruling; and

(d) the person in preparing or lodging a return or requesting an amendment to an assessment does not apply the eligible taxation law in accordance with the binding ruling.

PART 3 - PRODUCT RULINGS

3-1 Interpretation

In this Part:

consumer of a product means a proposed party, participant or investor of a product that involves, is or relates to the arrangement.

product ruling applicant means a person that is a party to or that is intending to be a party to the arrangement that is the subject of the product ruling.

3-2 Application for a product ruling

(1) A product ruling applicant may apply to the Commissioner for a product ruling on how eligible taxation laws applies, or would apply to:

(a) an arrangement;

(b) the parties to an arrangement; or

(2) An application for a product ruling must:

(a) be made in such form as may be approved by the Commissioner; and

(b) comply with the disclosure requirements of paragraph 3-15.

(3) A product ruling applicant may at any time withdraw the application for a product ruling by notice in writing to the Commissioner.

3-5 Commissioner may make product rulings

(1) The Commissioner may make a product ruling on how any eligible taxation law applies to any person in relation to any arrangement if the Commissioner receives an application for a product ruling on an arrangement.

(2) In making a product ruling under subparagraph (1) the Commissioner may make the product ruling on how an eligible taxation law applies to:

(a) any arrangement;

(b) the parties to any arrangement; or

whether or not reference was made in the application to the:

(d) eligible taxation law;

(e) party; or

(f) consumer of a product.

(3) In making a product ruling under subparagraph (1) the Commissioner may not make the product ruling apply to a period before the later of:

(i) receipt of the product ruling application; or

(ii) commencement of the arrangement the subject of the product ruling.

(4) The Commissioner may decline to make a product ruling if:

(a) the Commissioner considers that the correctness of the product ruling would depend on which assumptions were made about a future event or other matter and the Commissioner considers it inappropriate to make assumptions as allowed by paragraph 3-35; or

(b) the matter on which the product ruling is sought is subject to an objection, challenge, or appeal, whether in relation to the applicant or any other person; or

(d) the Commissioner considers that the characteristics of persons who may enter into the arrangement would affect the correctness of the product ruling for other persons who may enter into the arrangement; or

(e) the Commissioner considers that the arrangement purports to have the purpose or effect of in any way directly or indirectly to:

(i) alter the incidence of any tax;

(ii) relieve any person from liability to pay any tax or make any return;

(iii) defeat, evade or avoid any duty or liability imposed on any person by any eligible taxation law; or

(iv) prevent the operation of any eligible taxation law in any respect.

(5) The Commissioner may not make a product ruling if:

(a) the application for the product ruling would require the Commissioner to determine questions of fact; or

(b) at the time the application is made or at any time before the product ruling is issued, the Commissioner considers that the person to whom the product ruling is to apply is not seriously contemplating the arrangement for which the product ruling is sought; or

(d) the matter on which the product ruling is sought is being dealt with, or in the Commissioners opinion should be dealt with, by one or both competent authorities of the parties to a double tax agreement; or

(e) a binding ruling already exists on how the eligible taxation law applies to the arrangement, to the parties to the arrangement or to a consumer of a product in relation to an arrangement and the proposed product ruling would apply to a period or income year to which the existing binding ruling applies; or

(f) in the Commissioners opinion the applicant has not provided sufficient information in relation to the application after the Commissioner has requested further information; or

(g) in the Commissioners opinion it would be unreasonable to make a product ruling in view of the resources available to the Commissioner; or

(h) the application for the product ruling would require the Commissioner to form an opinion as to a generally accepted accounting principle or to form an opinion as to a commercially acceptable practice; or

(i) in the Commissioners opinion the application for the product ruling would require the Commissioner to form an opinion as to the commerciality or commercial viability of an arrangement.

3-9 Binding application of a product ruling

(1) A product ruling is binding in relation to a person if:

(a) the person is specified in or is within a class of persons specified in the product ruling; and

(b) the person enters into the arrangement identified in the product ruling,

and a product ruling is binding:

(d) only for the period or income years for which the product ruling applies.

(2) A product ruling is not binding in relation to a person if:

(a) the arrangement entered into or carried out is materially different from the arrangement identified in the product ruling; or

(b) there was a material omission or misrepresentation in, or in connection with, the application for the product ruling; or

(c) the Commissioner makes an assumption about a future event or another matter that is material to the application of the product ruling, and the assumption subsequently proves to be incorrect; or

(d) the Commissioner stipulates a condition in the product ruling and that condition is not satisfied; or

(e) the person elects under subparagraph (3) for the product ruling not to be binding in relation to them in relation to a period, income year or income years.

(3) A person may elect for a product ruling not to be binding to them in relation to a period, income year or income years by:

(a) the person sending to the Commissioner a non-application of a binding ruling form specifying the product ruling and the period, income year or income years that the product ruling will not be binding to them; and

(b) the Commissioner receiving the non-application of a binding ruling form at the same time as or before the time the person is required to deliver to the Commissioner a return that relates to or includes the period, income year or income years specified in the non-application of a binding ruling form.

3-10 Effect of a product ruling being binding to a person

(1) Notwithstanding anything in any other provision of this Act or any other Act, if in accordance with paragraph 3-9 a product ruling is binding in relation to a person the Commissioner must apply the eligible taxation law in accordance with the product ruling.

(2) In accordance with subparagraph (1) the Commissioner in applying the eligible taxation law must apply the eligible taxation law in accordance with the product ruling even if:

(a) the Commissioner has subsequently adopted or published a different interpretation of the eligible taxation law; or

(b) the eligible taxation law has been subsequently judicially considered; or

(c) the application of the eligible taxation law in accordance with the product ruling results in more tax being payable than what would otherwise result.

(3) If a product ruling is binding in relation to a person, that person:

(a) must prepare and deliver all returns with the eligible taxation law applied in accordance with the product ruling; and

(b) must not:

(i) deliver any request for a further assessment that involves

(ii) lodge any objection that involves; or

(iii) lodge any appeal that involves,

the eligible taxation law not being applied in accordance with the product ruling,

regardless of whether that person or the Commissioner has subsequently adopted or published a different interpretation of the eligible taxation law or the eligible taxation law has been subsequently judicially considered.

3-15 Disclosure requirements

(1) An application for a product ruling must-

(a) identify the product ruling applicant; and

(b) disclose all relevant facts and documents relating to the arrangement for which the product ruling is sought; and

(c) if an arrangement has not commenced at the time of the application disclose all draft documents relating to the arrangement; and

(d) state the eligible taxation laws in respect of which the product ruling is sought; and

(e) state the propositions of law (if any) which are relevant to the issues raised in the application; and

(f) provide a draft of the product ruling that the applicant wishes the Commissioner to make.

(2) If the Commissioner considers that it would be unreasonable to require the applicant to comply with any of the requirements in subparagraphs (d) to (f) of subparagraph (1), the Commissioner may waive those requirements.

3-20 Commissioner may request further information

The Commissioner may at any time request further relevant information from a product ruling applicant.

3-25 Assumptions in making a product ruling

(1) If the Commissioner considers that the correctness of a product ruling would depend on assumptions being made about a future event or other matter, the Commissioner may:

(a) make the assumptions that the Commissioner considers to be most appropriate; or

(b) decline to make the product ruling under paragraph 3-5.

(2) The Commissioner may not make assumptions about information which the applicant can provide.

3-30 Right to consultation

Before the Commissioner makes a product ruling, the Commissioner is not required to but may provide the product ruling applicant with:

(a) a draft of the proposed product ruling that the Commissioner intends to make; and

(b) a reasonable opportunity to be consulted if the content of the proposed product ruling differs from that requested by the applicant.

3-35 Content and notification of a product ruling

(1) A product ruling must state:

(a) that it is a product ruling made under paragraph 3-5; and

(b) the name of the person who applied for the product ruling; and

(d) how the eligible taxation law applies to the arrangement; and

(e) the period for which the product ruling applies; and

(f) material assumptions about future events or other matters made by the Commissioner; and

(g) conditions stipulated by the Commissioner; and

(h) that the Commissioner does not sanction, guarantee or provide any assurance that the arrangement or product the subject of the product ruling is:

(i) commercially viable;

(ii) that charges are reasonable, appropriate or represent industry norms; or

(iii) that projected returns will be achieved or are reasonably based.

Anything that does not contain these statements is not a product ruling.

(2) A product ruling does not commence until the Commissioner notifies the making of the product ruling by notice in a publication of the Commissioner.

(3) The Commissioner must

(a) send a copy of the product ruling to the applicant as soon as practicable after the date on which the product ruling is made; and

(b) publish the product ruling in a publication of the Commissioner as soon as possible.

(4) A person, other than the product ruling applicant, cannot obtain a copy of a product ruling before it is published by the Commissioner.

3-36 Applicant to be given reasons

If the Commissioner declines or may not issue a product ruling under paragraph 3-5 the Commissioner must notify the product ruling applicant in writing of:

(a) the decision not to issue a product ruling; and

(b) the reasons why the product ruling will not be issued.

3-37 Completion of product ruling applications

(1) If the Commissioner has neither made the product ruling or provided written notice to the product ruling applicant that a product ruling will not be made a product ruling applicant may after the later of:

(a) 3 months of the date of an application under paragraph 3-2; or

(b) if the Commissioner requests further information in accordance with paragraph 3-20, 3 months after the applicant provides the further information requested,

request the Commissioner by notice in writing to consider the product ruling application.

(2) The Commissioner within 90 days of receiving a request in writing from a product ruling applicant under subparagraph (1) must:

(a) make the product ruling under paragraph 3-5; or

(b) notify the product ruling applicant in writing under paragraph 3-36 that a ruling will not be issued and the reasons why the product ruling will not be issued.

(3) If the Commissioner does not respond to the request in writing from an applicant under subparagraph (1) within the time provided in subparagraph (2) the Commissioner is deemed to have made a decision not to issue a product ruling.

(4) A product ruling applicant who has lodged a request under subparagraph (1) may withdraw the request at any time by notice in writing to the Commissioner of the withdrawal.

3-40 Withdrawal of a product ruling

(1) The Commissioner may at any time withdraw a product ruling.

(2) The Commissioner must provide notice of the withdrawal of a product ruling by giving notice in a publication of the Commissioner.

(3) A product ruling is withdrawn on the date stated in the notice of withdrawal. The date cannot be before the date on which notice is given under subparagraph (2).

(4) A status ruling on a withdrawn product ruling does not apply on and after the date specified in the notice of withdrawal.

(5) If the Commissioner withdraws a product ruling:

(a) the product ruling does not apply to an arrangement entered into after the date of withdrawal; but

(b) the product ruling continues to apply to which it previously applied for the remainder of the current income year or the income year specified in the product ruling provided that such arrangement was entered into before the date of withdrawal; and

(c) a status ruling that has been made on the product ruling continues to apply, for the remainder of the period or income year specified in the product ruling, if the arrangement to which it previously applied was entered into before the date of withdrawal.

(6) A notice of withdrawal must specify:

(a) that it is a withdrawal of a product ruling under this paragraph; and

(b) the product ruling that is being withdrawn; and

(d) any status ruling that applied to the product ruling; and

(e) that the status ruling is also being withdrawn; and

(f) the date of the withdrawal.

Anything that does not contain these statements is not a notice of withdrawal of a product ruling.

(7) The Commissioner must:

(a) send a copy of the notice of withdrawal to the person who applied for the product ruling as soon as practicable after the date of the withdrawal; and

(b) publish the notice of withdrawal in a publication of the Commissioner as soon as possible after the date of the withdrawal.

3-45 No liability

The Commissioner is not liable for damages, loss or any other claim arising from any cause of action by the fact that the Commissioner:

(a) makes a product ruling;

(b) withdraws a product ruling; or

(i) the commercial viability;

(iii) reasonableness or appropriateness of charges; or

(iii) whether projected returns will be achieved or are reasonably based,

of any business or commercial arrangement in a product ruling.

PART 5 - STATUS RULINGS

5-1 Interpretation

In this Part:

status ruling applicant means a person applying for a status ruling that is:

(a) a person who applied for a product ruling made under paragraph 3-2; or

(b) a person to whom a product ruling applies under paragraph 3-9.

5-2 Applying for status ruling on effect of change in legislation

A status ruling applicant may apply to the Commissioner for a status ruling on whether a product ruling applies to a person because:

(a) the amendment or repeal of a eligible taxation law that is stated as applying in the product ruling;

(b) the facts and documents taken place, executed and implemented in relation to an arrangement are materially the same as the assumptions that are stated as applying in the product ruling; or

(c) the facts and documents taken place, executed and implemented in relation to an arrangement are materially the same as the relevant facts and documents disclosed to the Commissioner in the product ruling,

has changed the way that the law applies in the product ruling.

5-5 Commissioner to make status rulings on request

(1) The Commissioner must make a status ruling on whether a product ruling applies to a person if:

(a) the amendment or repeal of an eligible taxation law that is stated as applying in the product ruling;

(b) the facts and documents taken place, executed and implemented in relation to an arrangement are materially the same as the assumptions that are stated as applying in the product ruling; or

has changed the way that the law applies in the product ruling.

(2) The Commissioner may make a status ruling on the way that the law applies in the product ruling has been varied as a consequence of a change to:

(a) the amendment or repeal of an eligible taxation law that is stated as applying in the product ruling; or

(b) the facts and documents taken place, executed and implemented in relation to an arrangement as compared to assumptions made in the product ruling; or

(c) the facts and documents taken place, executed and implemented in relation to an arrangement as compared to the relevant facts and documents disclosed to the Commissioner in the product ruling.

(3) In making a status ruling under subparagraph (1) or (2) the Commissioner may make a status ruling on whether a product ruling applies to a person to any period to which the product ruling is stated to apply.

(4) In making a status ruling under subparagraph (1) the Commissioner may make a status ruling on the way that the law applies in the product ruling has been varied applying to a period before the later of:

(5) In making a status ruling under subparagraph (2) the Commissioner may not make a status ruling on the way that the law applies in the product ruling has been varied applying to a period before the later of:

(i) receipt of the status ruling application; or

(ii) commencement of the arrangement the subject of the product ruling.

(6) The Commissioner may not make a status ruling if:

(a) the application is frivolous or vexatious; or

(b) the Commissioner considers that the correctness of the product ruling would depend on which assumptions were made about a future event or other matter; or

(c) the Commissioner considers that it would be unreasonable to make a status ruling in view of the resources available to the Commissioner.

5-10 Requirements for status ruling applications

(1) An application for a status ruling must be made in such form as may be approved by the Commissioner and must:

(a) identify that the applicant is:

(i) a person who applied for a product ruling made under paragraph 3-2; or

(ii) a person to whom a product ruling potentially applies under paragraph 3-9; and

(b) identify the product ruling on which the status ruling is sought; and

(i) the eligible taxation laws that are stated as applying in the product ruling that have been amended or repealed;

(ii) all relevant facts and documents and the assumptions that are stated as applying in the product ruling; and

(iii) all relevant facts and documents and the relevant facts and documents disclosed to the Commissioner in the product ruling;

(d) state any propositions of law that are relevant to the issues raised in the application; and

(e) provide a draft of the status ruling that the applicant wishes the Commissioner to make.

(2) If the Commissioner considers that it would be unreasonable to require the applicant to comply with any of the requirements in subparagraph (c) to (e) of subparagraph (1), the Commissioner may waive those requirements.

5-15 Commissioner may request further information

The Commissioner may at any time request further relevant information from a status ruling applicant for a status ruling.

5-20 Right to consultation

Before the Commissioner makes a status ruling, the Commissioner must give the status ruling applicant:

(a) a draft of the status ruling that the Commissioner proposes to make; and

(b) a reasonable opportunity to be consulted if the content of the proposed status ruling differs from that requested by the status ruling applicant.

5-25 Content of status ruling

A status ruling must identify the product ruling on which it is a status ruling and state:

(a) that it is a status ruling made under paragraph 5-5;

(b) whether the product ruling applies to the person;

(d) any variation to the way the law applies in the product ruling; and

(e) the date of the status ruling.

Anything that does not contain these statements is not a status ruling.

5-30 Notification of status ruling

(1) A status ruling does not commence until the Commissioner notifies the making of the status ruling by notice in a publication of the Commissioner.

(2) The Commissioner must:

(a) send a copy of the status ruling to the status ruling applicant as soon as practicable after the date on which the status ruling is made; and

(b) without disclosing the name or details sufficient to identify the status ruling applicant, publish the status ruling in a publication of the Commissioner as soon as possible.

5-35 Effect of status ruling varying a product ruling

(1) A status ruling stating a variation to the way the law applies in a product ruling has the effect of varying the product ruling on which it is a status ruling.

(2) The product ruling as varied by the status ruling is binding in relation to a person in accordance with paragraph 3-10 from the date of the status ruling.

(3) For the avoidance of doubt, a person may elect for a product ruling as varied by the status ruling not to be binding to them in relation to a period, income year or income years by:

(a) the person sending to the Commissioner a non-application of a binding ruling form specifying the status ruling and the period, income year or income years that the product ruling as varied by the status ruling will not be binding to them; and

5-45 No liability

The Commissioner is not liable for damages, loss or any other claim arising from any cause of action by the fact that the Commissioner:

(a) makes a status ruling;

(b) withdraws a status ruling; or

(i) the commercial viability;

(ii) reasonableness or appropriateness of charges; or

(iii) whether projected returns will be achieved or are reasonably based,

of any business or commercial arrangement in a status ruling.

---------------------------------

Passed by the House of Representatives this 11^th day of February, 2004.

Passed by the Senate this 2^nd day of March, 2004.

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