Income Tax Assessment Act 1936

Div 18 repealed by No 143 of 2007 , s 3 and Sch 1 item 64, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s 559A .

Div 18 substituted by No 51 of 1986.

Div 18 amended by No 108 of 1981, No 87 of 1978, No 117 and No 80 of 1975, No 126 of 1974, No 164 and No 51 of 1973, No 47 of 1972, No 85 and No 76 of 1967, No 50 of 1966, No 143 of 1965, No 110 of 1964 and No 94 of 1961.

S 160AFA repealed by No 143 of 2007 , s 3 and Sch 1 item 64, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s 559A . S 160AFA formerly read:

SECTION 160AFA CERTAIN DIVIDENDS DEEMED TO BE INTEREST INCOME  
160AFA(1)
A reference in this section to an accounting period of a foreign company is a reference to:

(a) the first accounting period of the foreign company that ends after 30 June 1987; or

(b) a subsequent accounting period of the foreign company.

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S 160AFA(1) and (1A) substituted for s 160AFA(1) by No 78 of 1988.

160AFA(1A)
For the purposes of this section, the relevant period in relation to a foreign company is the first accounting period during which the company derives net interest income amounting to at least 10% of its distributable profits in relation to that accounting period.

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S 160AFA(1A) amended by No 5 of 1991.

S 160AFA(1) and (1A) substituted for s 160AFA(1) by No 78 of 1988.

160AFA(2)
For the purposes of this section, the foreign company shall be deemed to have, during a period consisting of the relevant period and subsequent accounting periods, an interest pool consisting of the sum of any amounts of net interest income derived during:

(a) the relevant period; and

(b) any subsequent accounting period in which the company derives net interest income amounting to at least 10% of its distributable profits in relation to that subsequent accounting period;

reduced by the sum of any amounts deemed to be interest income by virtue of subsection (3).

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S 160AFA(2)(b) amended by No 5 of 1991.

S 160AFA(2) amended by No 78 of 1988.

160AFA(3)
Where:

(a) in the year of income commencing on 1 July 1987 or a subsequent year of income, a dividend is paid by the foreign company to a taxpayer; and

(b) at any time in that year of income, the foreign company is related to the taxpayer or would be related to the taxpayer if the taxpayer were an Australian company,

then, for the purposes of this Division, so much of that dividend as does not exceed the amount then standing in the interest pool of the foreign company shall be deemed to be interest income derived by the taxpayer in that year of income and not to be a dividend.

160AFA(4)
In this section, ``net interest income'' , in relation to a foreign company, in relation to an accounting period, means the interest income derived by the company in that period, reduced by:

(a) any deductions allowed or allowable under any law from the income of the company derived in that period that relate exclusively to that interest income; and

(b) so much of any other deductions allowed or allowable under any law from the income of the company so derived as, in the opinion of the Commissioner, may appropriately be related to that interest income.