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Worksheet 4 - Working out the attributable income of a CFC

Calculate the attributable income of a controlled foreign company and the amount to include in your assessable income.

Last updated 11 September 2016

Use this worksheet to work out the attributable income of a CFC and the amount to include in your assessable income.

Part A - Working out attributable income

Step 1

Summary of the notional assessable income of the CFC.

Category of notional assessable income

 

Amount $

Net capital gain under Parts 3-1 and 3-3 of ITAA 1997

 

                 

Interest class

 

                 

Offshore banking class

 

                 

Modified passive class

 

                 

Other notional assessable incomeclass

 

                 

 

Total:

a

$               

Step 2

Summary of the notional allowable deductions of the CFC. The subtotal for any class of income should not be more than the amount of income shown in step 1 for that class. If you work out a higher amount, reduce it to the amount in step 1 for that class.

AmountClass

Subtotal

General notional allowable deductionsInterest

               

SEXI lossOffshore banking

               

Converted CFC loss (subject to certain limitations)Modified passive

               

Other

               

Non-quarantined

               

Total: b

$             

Amount is the total of the notional allowable deductions of each class of income before any quarantining and previous years' losses. It does not include a sometimes exempt income loss.

SEXI loss is the sometimes exempt income loss of each class of income.

Converted CFCP/Y loss is the notional allowable deduction for previously unutilised losses which exist at the commencement of the statutory accounting period starting on or after 1 July 2008 and that have been converted in accordance with the transitional foreign loss rules for CFCs. A convertible CFC loss will be treated as a loss only for the purpose of applying Part X of ITAA 1936 to statutory accounting periods beginning on or after 1 July 2008. years losses of a class of income.

Step 3

Attributable income of the CFC before any reduction for interim dividends paid - item a less item b.

c

$               

Step 4

Interim dividends paid by the CFC from the amount at item c.

d

$               

 

Attributable income of the CFC

(c - d): A

$               

Part B - Working out your share of attributable income

Step 1

Insert your attribution percentage in the CFC at the end of the CFC's statutory period - as previously worked out in worksheet 1.

 

$               

Step 2

Work out your assessable income - multiply the amount at item Aa part A by the attribution percentage.

 

$               

Step 3

Insert the reduction amount you can claim if the CFC has income or gains which were accruals-taxed in a foreign country.

 

$               

Step 4

Take the amount in step 3 part B away from the amount in step 2 part B.


B


$               

QC21787