CHAPTER 4
-
INTERNATIONAL ASPECTS OF INCOME TAX
History
Chapter 4 inserted by No 162 of 2001.
PART 4-5
-
GENERAL
History
Part 4-5 inserted by No 162 of 2001.
Division 802
-
Foreign residents
'
income with an underlying foreign source
History
Div 802 inserted by No 147 of 2005, s 3 and Sch 2 item 1, applicable to income years starting on or after 1 July 2005. For additional application provisions see note under Subdiv
802-A
heading.
Subdivision 802-A
-
Conduit foreign income
History
Subdiv 802-A inserted by No 147 of 2005, s 3 and Sch 2 item 1, applicable to income years starting on or after 1 July 2005. No 147 of 2005, s 3 and Sch 2 items 27 and 28, contains the following additional application provisions:
27 Income years starting on 1 July 2005 or after that day and before Royal Assent
(1)
This item applies to an entity for whom an income year (the
first year
) starts:
(a)
on 1 July 2005; or
(b)
after that day and before the day on which this Act receives the Royal Assent
[
ie 14 December 2005].
(2)
The entity can only declare an amount to be conduit foreign income under Subdivision 802-A of the
Income Tax Assessment Act 1997
on or after the day on which this Act receives the Royal Assent.
(3)
An FDA surplus that exists for the entity under Subdivision
B
of Division
11A
of Part
III
of the
Income Tax Assessment Act 1936
at the end of the day before the day on which this Act receives the Royal Assent has effect as if it were the entity's conduit foreign income under Subdivision 802-A of the
Income Tax Assessment Act 1997
.
(4)
Any FDA credit under section
128TA
of the
Income Tax Assessment Act 1936
that arises during the period starting on 1 July 2005 and ending on the day before the day on which this Act receives the Royal Assent cannot also be conduit foreign income.
(5)
Section
802-40
of the
Income Tax Asssessment Act 1997
, as inserted by item 1, does not apply to the first year.
28 Later starting income years
(1)
This item applies to an entity for whom an income year (also the
first year
) starts on or after the day on which this Act receives the Royal Assent and before 1 July 2006.
(2)
The amendments made by items 7, 8, 9, 13 and 16, and 19 to 24 apply from the start of the first year.
(3)
An FDA surplus that exists for the entity under Subdivision
B
of Division
11A
of Part
III
of the
Income Tax Assessment Act 1936
at the start of the first year has effect as if it were the entity's conduit foreign income under Subdivision
802-A
of the
Income Tax Assessment Act 1997
.
...
Operative provisions
SECTION 802-35
Capital gains and losses
Capital gains
802-35(1)
The entity
'
s
conduit foreign income
includes these amounts:
(a)
the amount by which a *capital gain of the entity is reduced because of the operation of section
768-505
;
(b)
a capital gain that is disregarded because of the operation of subsection
23AH(3)
of the
Income Tax Assessment Act 1936
;
(c)
the amount of a capital gain that is disregarded as a result of the operation of an *international tax sharing treaty.
History
S 802-35(1) amended by No 101 of 2013, s 3 and Sch 2 item 30, by substituting
"
*international tax sharing treaty
"
for
"
international tax sharing treaty (as defined in subsection 136AA(1) of the
Income Tax Assessment Act 1936
)
"
in para (c), applicable: (a) in respect of tax other than withholding tax
-
in relation to income years starting on or after the date mentioned in subsection
815-15(2)
of the
Income Tax (Transitional Provisions) Act 1997
, as inserted; and (b) in respect of withholding tax
-
in relation to income derived, or taken to be derived, in income years starting on or after that date.
Capital losses
802-35(2)
The entity
'
s
conduit foreign income
is reduced by these amounts:
(a)
the amount by which a *capital loss of the entity is reduced because of the operation of section
768-505
;
(b)
a capital loss that is disregarded because of the operation of subsection
23AH(4)
of the
Income Tax Assessment Act 1936
;
(c)
the amount of a capital loss that is disregarded as a result of the operation of an *international tax sharing treaty.
History
S 802-35(2) amended by No 101 of 2013, s 3 and Sch 2 item 31, by substituting
"
*international tax sharing treaty
"
for
"
international tax sharing treaty (as defined in subsection 136AA(1) of the
Income Tax Assessment Act 1936
)
"
in para (c), applicable: (a) in respect of tax other than withholding tax
-
in relation to income years starting on or after the date mentioned in subsection
815-15(2)
of the
Income Tax (Transitional Provisions) Act 1997
, as inserted; and (b) in respect of withholding tax
-
in relation to income derived, or taken to be derived, in income years starting on or after that date.
Timing rule
802-35(3)
The adjustments are made under this section at the end of the income year in which the *CGT event occurred.
History
S 802-35 inserted by No 147 of 2005, s 3 and Sch 2 item 1, applicable to income years starting on or after 1 July 2005. For additional application provisions see note under Subdiv
802-A
heading.
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