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

Schedule 1   Foreign source income

Part 1   General amendments

Income Tax Assessment Act 1936

21   Section 317

Insert:

special excluded rental income , in relation to a company, in relation to a statutory accounting period, means income derived by the company in the statutory accounting period by way of rent, where:

(a) the income was derived by the company from a CFC; and

(b) at all times during the statutory accounting period when the income accrued:

(i) the CFC was an associate of the company; and

(ii) the company was a resident of a particular listed country or a particular unlisted country; and

(iii) the CFC was also a resident of that listed country or that unlisted country, as the case may be; and

(c) the income was taxed in that listed country or that unlisted country, as the case may be, at the country's normal company tax rate (see section 325); and

(d) the income would not have been, in whole or in part, a notional allowable deduction of the CFC if it were assumed that the CFC had failed to pass the active income test in relation to any statutory accounting period of the CFC.