S 121EG repealed by No 110 of 2021, s 3 and Sch 2 item 6, effective 1 October 2021 and applicable in relation to assessments for the 2023-24 year of income and later years of income. S 121EG formerly read:
SECTION 121EG REDUCTION OF ASSESSABLE OB INCOME, ALLOWABLE OB DEDUCTIONS AND FOREIGN INCOME TAX PAID
121EG(1)
Only eligible fraction of assessable OB income is assessable.
Subject to section 121EH, the assessable income of an OBU includes only the eligible fraction of each amount of assessable OB income derived by the OBU.
121EG(2)
Only eligible fraction of allowable OB deductions is allowable.
Subject to section 121EH, only the eligible fraction of each allowable OB deduction of an OBU is an allowable deduction of the OBU.
121EG(3)
Remaining amounts not exempt income etc.
For the purposes of this Act:
(a)
any amount of assessable OB income of an OBU that, because of subsection (1), is not included in its assessable income is taken not to be exempt income of the OBU; and
(b)
any part of an allowable OB deduction of an OBU that, because of subsection (2), is not an allowable deduction of the OBU is taken not to be an expense or outgoing incurred in deriving exempt income of the OBU.
121EG(3A)
Only eligible fraction of foreign income tax is taken to be paid.
Subject to section 121EH, this Act applies to an OBU as if only the eligible fraction of each amount of foreign income tax (within the meaning of the
Income Tax Assessment Act 1997
) the OBU paid in respect of an amount of assessable OB income had been paid in respect of that income.
History
S 121EG(3A) inserted by No 143 of 2007, s 3 and Sch 1 item 57, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s 559A.
121EG(4)
Meaning of
eligible fraction
.
In this section:
eligible fraction
means 10 divided by the number of percent in the corporate tax rate.
History
Definition of
"
eligible fraction
"
amended by No 23 of 2005.
S 121EG inserted by No 191 of 1992.
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