Tax Laws Amendment (Foreign Source Income Deferral) Act (No. 1) 2010 (114 of 2010)

Schedule 1   Repeal of the FIF and deemed present entitlement rules

Part 1   Main amendments

Income Tax Assessment Act 1997

55   Section 717-220

Repeal the section, substitute:

717-220 FIF surpluses

(1) This section operates for the purposes of sections 23AK and 23B of the Income Tax Assessment Act 1936 if:

(a) a company (the joining company ) becomes a *subsidiary member of a *consolidated group at a time (the joining time ); and

(b) just before the joining time there was a post FIF abolition surplus for a FIF attribution account entity in relation to the joining company for the purposes of those sections; and

(c) just before the joining time, the joining company's FIF attribution account percentage in relation to the FIF attribution account entity for the purposes of those sections was more than nil.

Credit in relation to the head company

(2) A post FIF abolition credit arises at the joining time for the FIF attribution account entity in relation to the *head company of the group. The credit is equal to the post FIF abolition surplus.

Debit in relation to the joining company

(3) A post FIF abolition debit arises at the joining time for the FIF attribution account entity in relation to the joining company. The debit is equal to the post FIF abolition surplus.

Definitions

(4) In this section:

FIF attribution account entity has the same meaning as in former Part XI of the Income Tax Assessment Act 1936.

FIF attribution account percentage has the same meaning as in former Part XI of the Income Tax Assessment Act 1936.

post FIF abolition credit has the same meaning as in the Income Tax Assessment Act 1936.

post FIF abolition debit has the same meaning as in the Income Tax Assessment Act 1936.

post FIF abolition surplus has the same meaning as in the Income Tax Assessment Act 1936.