Income Tax Assessment Act 1936

PART X - ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES  

Division 9 - Attribution of attributable income and other amounts  

SECTION 459A   ASSESSABILITY WHERE CFC OR CFT HAS INTEREST IN CERTAIN ATTRIBUTABLE TAXPAYERS  

459A(1)    
Where:

(a) an amount (in this subsection called the " section 456 to 459A amount " ) is included in the assessable income of an Australian partnership or of an Australian trust of a year of income under section 456 or 457 or under this section (apart from subsection (2)); and

(b) a CFC or CFT has an individual interest in the net income of the Australian partnership, or a present entitlement to a share of the net income of the Australian trust, being an interest or entitlement held either directly or indirectly through interposed Australian partnerships, CFPs or Australian trusts (or any combination thereof); and

(c) a taxpayer is an attributable taxpayer in relation to the CFC or CFT:

(i) where the section 456 to 459A amount is included in assessable income under section 456 - at the end of the statutory accounting period referred to in that section; or

(ii) where the amount is included under section 457 - at the residence-change time referred to in that section; or

(iii) (Repealed by No 96 of 2004)

(iv) (Repealed by No 96 of 2004)

(v) where the amount is included under this section - at the time referred to in whichever subparagraph of this paragraph applied for the purposes of so including the amount;

then, subject to subsection (2), the assessable income of the attributable taxpayer of the year of income includes an amount calculated using the formula:

AP   ×   Interest/ Entitlement   ×   Section 456 to 459A amount

where:

" AP " [Attribution Percentage] means the taxpayer ' s attribution percentage, at the time referred to in paragraph (c), for the CFC or CFT;

" Interest/Entitlement " means the percentage of the net income of the Australian partnership or Australian trust represented by the sum of the direct and indirect interests or present entitlements of the CFC or CFT;

" Section 456 to 459A amount " means the section 456 to 459A amount.

459A(2)    
Where:

(a) apart from this subsection, an amount (in this subsection called the " subsection (1) amount " ) is included under subsection (1) in the assessable income of an attributable taxpayer in relation to a CFT; and

(b) the following conditions are satisfied in respect of one or more other amounts (each of which is in this subsection called an " assessed attributable amount " );

(i) each is:

(A) apart from this subsection, included in the assessable income of a taxpayer (whether or not the attributable taxpayer), other than a trust or partnership; or

(B) assessed to a trustee under section 98 , 99 or 99A ;

(ii) each is attributable directly through the CFT, or indirectly through the CFT and any interposed partnerships or trusts (or any combination thereof), to the section 456 to 459A amount referred to in subsection (1);

then the subsection (1) amount is reduced to the extent that the Commissioner considers it represents an assessed attributable amount or assessed attributable amounts.

459A(3)    
A reference in subsection (1) to an Australian trust or in subsection (2) to a trust does not include a reference respectively to an Australian trust or a trust that is, in relation to the year of income concerned:

(a) (Repealed by No 53 of 2016)

(b) a public trading trust within the meaning of Division 6C of that Part; or

(c) a complying superannuation fund, a non-complying superannuation fund, a complying approved deposit fund, a non-complying approved deposit fund or a pooled superannuation trust.