Income Tax Assessment Act 1936

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

Division 7 - Calculation of attributable income of CFC  

Subdivision C - Modifications relating to Australian capital gains tax  

SECTION 418A   EFFECT OF CHANGE OF RESIDENCE FROM AUSTRALIA TO LISTED OR UNLISTED COUNTRY  

418A(1)    
For the purposes of applying this Act in calculating the attributable income of the eligible CFC, where:

(a) disregarding the residency assumption, at any time (in this section called the residence-change time ) during the eligible period or an earlier statutory accounting period beginning on or after the day following the eligible CFC's commencing day, the eligible CFC ceased to be a resident within the meaning of section 6 and became a resident of a listed country or an unlisted country; and

(b) the eligible CFC owned a CGT asset at the residence-change time; and

(c) a CGT event happens in relation to the asset during the eligible period;

then sections 411 to 414 (inclusive) apply, in addition to any application apart from this section but subject to subsection (2) of this section, to the asset as if:

(d) any reference in those sections to a commencing day asset were a reference to the asset; and

(e) any reference in those sections relating to the eligible CFC's commencing day or the day following the eligible CFC's commencing day were a reference relating respectively to the residence-change time or a time immediately after the residence-change time; and

(f) if section 104-160 of the Income Tax Assessment Act 1997 (CGT event I1) applied to the change of residence for the purposes of the application of this Act apart from this Part:

(i) section 412 applies as if subsections 412(2) and (3) referred only to the market value of the asset concerned; and

(ii) section 414 applies as if paragraphs 414(3)(b) and (4)(b) referred only to the market value of the asset concerned.

418A(2)    

Where the asset is a commencing day asset, sections 411 to 414 (inclusive) do not apply, in spite of anything contained in those sections, to the asset except in accordance with subsection (1) of this section.