Income Tax (Transitional Provisions) Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 830 - Application of the foreign hybrid rules  

SECTION 830-20   Modifications of income tax law  

830-20(1)    
This section sets out the modifications of the Income Tax Assessment Act 1936 that, if section 830-15 of this Act so provides, apply in working out for a taxpayer:

(a) the attributable income of a CFC for the statutory accounting period that ended in an income year; or

(b) the notional income of a FIF for the notional accounting period that ended in an income year.

CFC - residence

830-20(2)    
If the CFC is not a resident of a particular listed country or a particular unlisted country for the purposes of Part X of the Income Tax Assessment Act 1936 (including after applying section 331 of that Act), then for the purposes of that Part, the CFC is taken to be a resident of the country under whose laws it was formed.

CFC - foreign tax paid by taxpayer

830-20(3)    

For the purpose of subsection 393(1) of the Income Tax Assessment Act 1936 , if the taxpayer paid foreign tax (within the meaning of that Act) (the actual foreign tax ) on its interest in an amount included in the notional assessable income of the CFC for the statutory accounting period, then the CFC is taken to have paid foreign tax (within the meaning of that Act) in respect of the amount equal to the actual foreign tax divided by the taxpayer's direct attribution interest in the CFC at the end of the statutory accounting period.

CFC - foreign tax paid by another CFC

830-20(4)    

For the purpose of subsection 393(1) of the Income Tax Assessment Act 1936 , if:

(a) on the assumption in paragraph 830-15(1) (c) of this Act, another CFC (the tracing CFC ) would have been a partner in the foreign entity that the CFC mentioned in subsection (1) of this section (the foreign hybrid CFC ) would have been; and

(b) the taxpayer had an attribution tracing interest in the tracing CFC that was taken into account in calculating the taxpayer's attribution percentage for the foreign hybrid CFC at the end of the statutory accounting period; and

(c) the tracing CFC paid foreign tax (within the meaning of that Act) (the actual foreign tax ) on its interest in an amount included in the notional assessable income of the foreign hybrid CFC for the statutory accounting period;

then the foreign hybrid CFC is taken to have paid foreign tax (within the meaning of that Act) , in respect of the amount included in its notional assessable income, equal to the actual foreign tax divided by the tracing CFC's direct attribution interest in the foreign hybrid CFC at the end of the statutory accounting period.

FIF - foreign tax paid by taxpayer

830-20(5)    

For the purpose of section 573 of the Income Tax Assessment Act 1936 , if the taxpayer paid foreign tax (within the meaning of that Act) (the actual foreign tax ) on its interest in an amount included in the notional income of the FIF for the notional accounting period, then the FIF is taken to have paid foreign tax (within the meaning of that Act) in respect of that amount equal to the actual foreign tax divided by the attribution percentage applicable under section 581 of that Act to the taxpayer in respect of the taxpayer's interests in the FIF at the end of the notional accounting period.