Summary
Amends the: Income Tax Assessment Act 1997 to: reduce the amount of the capital gain or capital loss that will be subject to capital gains tax rules where Australian companies and controlled foreign companies sell shares in a foreign company with an underlying active business; Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997 to extend the current exemptions for foreign branch profits and foreign dividends to all countries from 1 July 2004; and Income Tax Assessment Act 1936 to reduce the scope of tainted services income. Also contains application and transitional provisions.