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Worksheet 1 - Working out your control and attribution percentages

Use this worksheet to calculate your control and attribution percentages, regarding foreign income.

Last updated 11 September 2016

Answer the following questions to determine:

  • if a foreign company is a CFC
  • if you are an attributable taxpayer in a CFC
  • your attribution percentage.

In the questions that follow, the test time is the end of the statutory accounting period of the foreign company that falls within your income year, or the time at which a dividend was paid by a foreign company. Fill out a separate worksheet for each test time.

  1. Have you or your associates held, or had an entitlement to acquire, any interest in a foreign company during the income year? The interest may be held directly or through other entities.

Yes

Go to question 2.

No

The CFC measures do not apply.
  1. Did you or your associates have an interest in the foreign company at the test time? The interest may be held directly or through other entities.

Yes

Go to question 3.

No

The CFC measures do not apply.
  1. What was your direct control interest in the foreign company at the test time?

To work this out, take the highest of the following interests that you held, or were entitled to acquire, in the foreign company at the test time.

  • percentage of the total paid-up capital of the company
 

          %
  • percentage of the total rights to vote, or participate in any decision making, concerning any of the following:
 		  
  • making distributions of capital or profits
 

          %
  • changing the constituent documents
 

          %
  • varying the share capital
 

          %
  • percentage of the total rights to distributions of capital of the company on winding up
 

          %
  • percentage of the total rights to distributions of profits on winding up
 

          %
  • percentage of the total rights to distributions of capital of the company other than on winding up
 

          %
  • percentage of the total rights to distributions of profits of the company other than on winding up.
 

          %

Insert the highest percentage of the above interests at a:

a

          %
  1. At the test time, did any of your associates hold, or have an entitlement to acquire, a direct interest in the foreign company?

Yes

Work out the interest and enter it at b:

b

          %

No

Go to question 5.
  1. At the test time, did you hold, or have an entitlement to acquire, an indirect control interest in the foreign company through another controlled foreign company, controlled foreign partnership or controlled foreign trust?

Yes

Work out the interest and enter it at c:

Do not include interests taken into account in question 4.

c

          %

No

Go to question 6.
  1. At the test time, did any of your associates hold, or have an entitlement to acquire, an indirect interest in the foreign company?

Yes

Work out the total of those interests and enter it at d:

Do not include interests taken into account in questions 3, 4 or 5.

d

          %

No

Go to question 7.
  1. At the test time, did you have an associate-inclusive control interest of 1% or more in the foreign company?
  • To answer this, add the following amounts:
 		    
  • your direct interest in the foreign company -
    from a question 3.
 

a

          %
  • your associates' direct interest in the foreign company -
    from b  question 4.
 

b

          %
  • your indirect interests in the foreign company -
    from c  question 5.
 

c

          %
  • your associates' indirect interests in the foreign company -
    from d  question 6.
 

d

          %
 

Total of (a + b + c + d)

          %

This is your associate-inclusive control interest in the CFC.

If your answer is less than 1%, the CFC measures do not apply.

If it is 1% or more, go to question 8.

  1. At the test time, did 5 or fewer Australian entities, each with an associate-inclusive control interest of 1% or more, have a total associate inclusive control interest of 50% or more in the foreign company?

Yes

The foreign company is a CFC. Go to question 11.

No

Go to question 9.
  1. At the test time, was there a single Australian entity whose associate-inclusive control interest in the company was at least 40%? Your answer is NO if the foreign company was controlled by an unassociated party or parties.

Yes

The foreign company is a CFC at the test time. Go to question 11.

No

Go to question 10.
  1. Is the foreign company in fact controlled by a group of 5 or fewer Australian entities, alone or with associates?

Yes

The foreign company is a CFC at the test time. Go to question 11.

No

The CFC measures do not apply.
  1. At the test time, did you have an associate-inclusive control interest of at least 10% in the CFC?

Yes

You are an attributable taxpayer. You must work out the attributable income of the CFC at the test time. Go to question 13.

No

Go to question 12.
  1. If the CFC is controlled by a group of 5 or fewer Australian entities, either alone or with associates, are you an Australian 1% entity who is one of those 5 entities?

Yes

You are an attributable taxpayer. Go to question 13.

No

The CFC measures do not apply.
  1. What is your direct attribution interest in the CFC?

This is the same percentage as the direct control interest.

Write the answer from a  at question 3 here.

          %

Go to question 14.

  
  1. What is the total of your indirect attribution interests in the CFC?

Do not include the interests of your associates.

          %

Go to question 15.

  
  1. Add the answers to questions 13 and 14

This is your attribution percentage in the CFC at the test time.

          %

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