Income Tax Assessment Act 1936

PART X - ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES  

Division 3 - Control interests, attribution interests, attributable taxpayers and attribution percentages  

Subdivision C - Attributable taxpayers and attribution percentages  

SECTION 362   ATTRIBUTION PERCENTAGE OF AN ATTRIBUTABLE TAXPAYER  

362(1)   [Calculation of attribution percentage]  

Subject to this section, the attribution percentage of an attributable taxpayer in relation to a CFC or CFT at a particular time is the sum of:

(a) the direct attribution interest in the CFC or CFT held by the taxpayer at that time; and

(b) the aggregate of the indirect attribution interests in the CFC or CFT held by the taxpayer at that time.

362(2)   [Interest held or entitled to be acquired]  

If, apart from this subsection, both of the following things would be counted in calculating the attribution percentage of an attributable taxpayer in relation to a CFC or CFT at a particular time:

(a) the holding of a direct attribution interest in an entity by any other entity;

(b) an entitlement to acquire that direct attribution interest;

only one of those things is to be taken into account.

362(3)   [Reduction of attribution percentage in CFC]  

If:

(a) in calculating the percentage that would be the attribution percentage of an attributable taxpayer (apart from this subsection and subsection (5)) in relation to a CFC at a particular time (in this subsection called the test time ) regard was had to an attribution tracing interest of an eligible transferor in relation to a CFT, being an attribution tracing interest determined under subsection 360(1) ; and

(b) the attribution percentage referred to in paragraph (a) is greater than it would have been apart from subsection 360(1) ; and

(c) there are other eligible transferors in relation to the CFT at the test time; and

(d) the attributable taxpayer gives to the Commissioner, in accordance with a form approved, in writing, by the Commissioner, such information as is required by the form to be given;

the Commissioner may reduce the attribution percentage referred to in paragraph (a) by such amount as the Commissioner considers reasonable in the circumstances.

362(4)   [Reduction of attribution percentage in CFT]  

If:

(a) in calculating the percentage that would be the attribution percentage of an attributable taxpayer (apart from this subsection and subsection (5)) in relation to a CFT (in this subsection called the attributing CFT ) at a particular time (in this subsection called the test time ) regard was had to:

(i) a direct attribution interest of the attributable taxpayer in relation to the attributing CFT, being direct attribution interest determined under subsection 356(2) ; or

(ii) an attribution tracing interest of an eligible transferor in relation to another CFT (in this subsection called the interposed CFT ); and

(b) the attribution percentage referred to in paragraph (a) is greater than it would have been apart from subsection 356(2) or 360(1), as the case may be; and

(c) at the test time, there are other eligible transferors in relation to the attributing CFT or the interposed CFT, as the case may be; and

(d) the attributable taxpayer gives to the Commissioner such information, and produces to the Commissioner such documents, as the Commissioner requires in connection with the operation of this subsection;

the Commissioner may reduce the attribution percentage referred to in paragraph (a) by such amount as the Commissioner considers reasonable in the circumstances.

362(5)   [Aggregate attribution percentage exceeds 100%]  

If, apart from this subsection, the aggregate of the attribution percentages of all the attributable taxpayers in relation to a CFC or CFT at a particular time would exceed 100%, the attribution percentage of each of those attributable taxpayers is the percentage calculated using the formula:

Individual percentage Total percentage

×   100

where:

Individual percentage means the percentage that would, apart from this subsection, be the attribution percentage of the attributable taxpayer concerned;

Total percentage means the aggregate of the percentages that would, apart from this subsection, be the attribution percentages of all the attributable taxpayers.