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

76   Subsection 830-10(2)

Repeal the subsection, substitute:

(2) If a partner is not an *attributable taxpayer in relation to a *limited partnership, then, for the purposes of applying the Income Tax Assessment Act 1936 and this Act in relation to the partner's interest in the limited partnership, the limited partnership is a foreign hybrid limited partnership in relation to an income year for the partner if, and only if, the partner:

(a) has made an election under former subsection 485AA(1) of the Income Tax Assessment Act 1936; or

(b) makes an election under this paragraph;

in relation to the partner's interest in the partnership.

(3) For the purposes of subsection (2), the limited partnership is a foreign hybrid limited partnership in relation to any income year during which an election referred to in paragraph (2)(a) or (2)(b) is in force.

(4) An election can only be made under paragraph (2)(b) if:

(a) disregarding subsection 94D(6) of the Income Tax Assessment Act 1936:

(i) at the end of the income year in which the election is made, the partner has an interest in a FIF (within the meaning of former Part XI of that Act) that is a *corporate limited partnership; and

(ii) the interest consists of a *share in the FIF; and

(b) the limited partnership satisfies paragraphs (1)(a) to (d) in relation to the income year in which the election is made.

(5) An election under paragraph (2)(b) must be made:

(a) on or before the day on which the partner lodges the partner's income tax return for the income year; or

(b) within a further time allowed by the Commissioner.

(6) The election:

(a) is in force during the income year and all later income years; and

(b) is irrevocable.