Taxation Laws Amendment (Foreign Income Measures) Act 1997 (155 of 1997)

Schedule 1   Foreign source income

Part 5   Application and transitional

129   Transitional - countries that emerged on the dissolution of Czechoslovakia, the USSR or Yugoslavia

 

(1) For the purposes of this item, each of the following is a designated country :

(a) Armenia;

(b) Azerbaijan;

(c) Belarus;

(d) Bosnia and Herzegovina;

(e) Croatia;

(f) Czech Republic;

(g) Estonia;

(h) Federal Republic of Yugoslavia;

(i) Former Yugoslav Republic of Macedonia;

(j) Georgia;

(k) Kazakstan;

(l) Kyrgyzstan;

(m) Latvia;

(n) Lithuania;

(o) Moldova;

(p) Russian Federation;

(q) Slovak Republic;

(r) Slovenia;

(s) Tajikistan;

(t) Turkmenistan;

(u) Ukraine;

(v) Uzbekistan.

      

(2) An entity may, by writing, elect that this item applies to the entity.

      

(3) If:

(a) an election is made by a company under subitem (2); and

(b) at the time when the election is made, the company is related to one or more other companies that are Part X Australian residents;

the election has no effect unless that other company, or each of those other companies, as the case requires, also make or makes an election under subitem (2).

      

(4) If an election is made by an entity under subitem (2), the amount included in the entity's assessable income under section 456 of the Income Tax Assessment Act 1936 in relation to a particular CFC is to be determined as if each designated country were a listed country throughout each statutory accounting period of the CFC that began before 24 December 1996.

      

(5) If an election is made by an entity under subitem (2), then, for the purposes of the application of the Income Tax Assessment Act 1936 to a company that, apart from this subitem, is a resident of a designated country (other than the Czech Republic) during the whole or a part of the interim period, the exempting profits, in relation to the entity, of the company during the interim period are to be determined as if the company were a resident of an unlisted country throughout the interim period. For this purpose, the interim period is the period:

(a) beginning on 24 December 1996; and

(b) ending at the end of the accounting period of the company in which 24 December 1996 occurs.

      

(6) If an election is made by an entity under subitem (2), the assessable income of the entity is to be determined as if each designated country were a listed country for the purposes of sections 23AH, 23AJ, 47A, 380, 457, 458 and 459 of the Income Tax Assessment Act 1936 at all times before 24 December 1996.

      

(7) If an election is made by an entity under subitem (2), the amount included in the entity's assessable income under section 102AAZD of the Income Tax Assessment Act 1936 in relation to a particular trust estate is to be determined as if each designated country were a listed country throughout each year of income of the trust estate that began before 24 December 1996.

      

(8) Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment for the purposes of giving effect to this item.

      

(9) For the purposes of this item, the question whether companies are related to each other is to be determined in accordance with section 160G of the Income Tax Assessment Act 1936.

      

(10) An election under subitem (2) is irrevocable.

      

(11) An expression used in this item and in Part X of the Income Tax Assessment Act 1936 has the same meaning in this item as it has in that Part.