Taxation Laws Amendment Act (No. 2) 1996 (76 of 1996)

Schedule 1   Amendment of the Income Tax Assessment Act 1936: various measures

Part 1   Offshore banking units

17   At the end of section 121EL

Add:

; and (f) any income of the trust estate derived from an investment activity covered by subsection 121D(6A) is exempt from income tax, in so far as the income exceeds the average Australian asset percentage (within the meaning of subsection 121DA(2)) for the portfolio investment concerned; and

(g) if, apart from this section, a capital gain would accrue to, or a capital loss would be incurred by, the trust estate under Part IIIA in respect of the disposal of any asset in the course of, or in connection with, an investment activity covered by subsection 121D(6A)-only the average Australian asset percentage (for the portfolio investment concerned) of the gain so accrues, or of the loss is so incurred.