Income Tax Assessment Act 1936

PART IIIB - AUSTRALIAN BRANCHES OF FOREIGN BANKS  

Division 3 - Provisions relating to withholding tax  

SECTION 160ZZZJ   WITHHOLDING TAX ON INTEREST PAID BY BRANCH TO BANK  

160ZZZJ(1)    
If:

(a) an amount of interest is taken under section 160ZZZA to be paid to, and derived by, a foreign bank by an Australian branch of the bank; and

(b) apart from this section, section 128B of this Act, and Subdivision 12-F in Schedule 1 to the Taxation Administration Act 1953 , would apply to an amount (the taxable amount ) that comprises the whole or a part of the amount so taken to be paid;

the following subsections have effect.

160ZZZJ(2)    

Section 128B of this Act, and Subdivision 12-F in Schedule 1 to the Taxation Administration Act 1953 , apply only to the amount worked out using the formula:

Taxable amount 2

160ZZZJ(3)    
An amount to which section 128B applies because of subsection (2) of this section is taken, for the purposes of section 128C , to be income that was derived by the bank when the amount of interest referred to in paragraph (1)(a) is taken to have been paid to the bank.