Income Tax Assessment Amendment (Foreign Investment) Act 1992 (190 of 1992)

26   After section 431 of the Principal Act the following Subdivision is inserted in Division 7 of Part X

"Subdivision E-Modifications Relating to Application of Part XI

Exemption of attributable taxpayer from Part XI

"431A.(1) For the purpose of applying this Act in calculating the attributable income of the eligible CFC, section 494 is to be disregarded and the following provisions have effect.

"(2) If:

(a) an amount of foreign investment fund income that accrued to the eligible CFC from a FIF in respect of a notional accounting period of the FIF would, apart from this subsection, be included in the eligible CFC's notional assessable income of the eligible period; and

(b) the statutory accounting period of the CFC coincides with that notional accounting period of the FIF; and

(c) section 456 applies to the eligible taxpayer at the end of the statutory accounting period of the FIF;

section 529 does not apply to the eligible CFC in relation to the FIF in respect of the notional accounting period of the FIF referred to in paragraph (a).

"(3) If:

(a) an amount of foreign investment fund income that accrued to the eligible CFC from a FIF in respect of a notional accounting period of the FIF would, apart from this subsection, be included in the eligible CFC's notional assessable income of the eligible period; and

(b) each of 2 or more statutory accounting periods of the FIF occurs partly within that notional accounting period of the FIF; and

(c) section 456 applies to the eligible taxpayer at the end of each of those statutory accounting periods of the FIF;

section 529 does not apply to the eligible CFC in relation to the FIF in respect of the notional accounting period of the FIF referred to in paragraph (a).

Dividends paid before attribution credit arises

"431B. For the purpose of applying this Act in calculating the attributable income of the eligible CFC for a statutory accounting period, section 530 has effect as if the reference in paragraph (a) of subsection (1) of that section to a FIF attribution account payment being made by a FIF to a taxpayer during a notional accounting period of the FIF were a reference to such a payment being made by a FIF to the eligible CFC after the end of that notional accounting period and before the end of the statutory accounting period of the eligible CFC in which that notional accounting period ended.".