Draft Taxation Determination

TD 93/D214

Income tax: Offshore Banking Units (OBU) - is an OBU entitled to concessional tax treatment for income derived from successful completion of offshore banking (OB) advisory activities which were entered into prior to the entity being registered as an OBU?

• Please note that the PDF version is the authorised version of this draft ruling.
  This document has been finalised by TD 93/216.

FOI status:

draft only - for comment

Preamble

1. Yes, where the fee income is derived after the entity has been registered as an OBU.

2. When an entity earns fee income for completing an assignment on a success only basis, the OB income is derived on the date that the assignment was completed and the entity becomes entitled to its fee. Accordingly, income derived after the date of registration of the OBU upon successful completion of an assignment that otherwise qualifies as an OB activity will constitute OB income. This is the case notwithstanding that some work may have been done prior to registration provided that this work itself did not give rise to an entitlement to income.

Commissioner of Taxation
19/8/93

References

BO 93/3707-5

Related Rulings/Determinations:

TD 93/131 OB activities entered into by an OBU prior to 1 July 1992

Subject References:
Offshore banking
OBUs
advisory activity

Legislative References:
ITAA Pt III Div 9A