Income Tax Assessment Act 1936

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

Division 3 - Control interests, attribution interests, attributable taxpayers and attribution percentages  

Subdivision B - Attribution interests  

SECTION 360   ATTRIBUTION TRACING INTEREST IN A CFT  

360(1)   [Entity deemed to hold 100% interest]  

An entity that is an eligible transferor at a particular time in relation to a CFT holds an attribution tracing interest in the CFT at that time equal to 100%.

360(2)   [Application of subsec (1)]  

Subsection (1) does not apply if:

(a) the eligible transferor is a natural person (other than a natural person in the capacity of a trustee); and

(b) the CFT is a non-resident family trust in relation to the natural person.

360(3)   [Entitlement to income or corpus of CFT]  

An entity (in this subsection called the ``lower entity'' ) that is a beneficiary in a CFT holds an attribution tracing interest in the CFT at a particular time equal to:

(a) the percentage of the income of the CFT represented by the share of the income to which the lower entity is entitled, or that the lower entity is entitled to acquire; or

(b) the percentage of the corpus of the CFT represented by the share of the corpus to which the lower entity is entitled, or that the lower entity is entitled to acquire;

or, if those percentages differ, the greater of those percentages.

360(4)   [Subsec (3) interest deemed not held]  

An entity that holds an attribution tracing interest in a CFT at a particular time because of subsection (1) is not to be taken to hold any attribution tracing interest in the CFT at that time because of subsection (3).