INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

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

Division 7 - Calculation of attributable income of CFC  

Subdivision B - General modifications of Australian tax law  

SECTION 401   REDUCTION OF DISPOSAL CONSIDERATION OR CAPITAL PROCEEDS WHERE ATTRIBUTED INCOME NOT DISTRIBUTED  

401(2)   [References to disposal of an asset under Pt IIIA]  

For the purposes of this section, where the provision referred to in paragraph (1)(a) is in Part IIIA of this Act, as applied in accordance with this Division, references in this section to the disposal of an asset are references to the disposal of an asset within the meaning of Part IIIA of this Act as so applied.

401(3)    

(d)

(ii) if subparagraph (i) does not apply - only a proportion of each surplus (after any application of paragraph (b)) is to be taken into account under paragraph (1)(c), being the proportion calculated using the formula:

Consideration                     Total grossed-up surplus

where:

Consideration means the amount of the consideration or the capital proceeds;

Total grossed-up surplus means the sum of the grossed-up amounts of the attribution surpluses (after any application of paragraph (b)).