Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 855 - Capital gains and foreign residents  

Subdivision 855-B - Becoming an Australian resident  

SECTION 855-55   CFC becomes an Australian resident  

855-55(1)    
This section applies to a *CFC that stops at a time (the residence change time ) being a resident of a *listed country or an *unlisted country and becomes an Australian resident.

855-55(2)    
Section 855-45 does not apply to the *CFC.

855-55(3)    
The modifications of Parts 3-1 and 3-3 of this Act in sections 411 to 414 of the Income Tax Assessment Act 1936 have the effect they would have, in relation to each *commencing day asset owned by the *CFC at the residence change time, if those modifications were used to work out the taxable income of the CFC rather than its *attributable income.

855-55(4)    

However, if a *capital gain on a *commencing day asset of the *CFC (for a period before the residence change time) was subject to foreign tax in a *listed country, the modifications of Parts 3-1 and 3-3 of this Act in sections 411 to 414 of the Income Tax Assessment Act 1936 have the effect they would have in relation to the asset if:

(a) those modifications were used to work out the taxable income of the CFC rather than its *attributable income; and

(b) the *commencing day of the CFC were the residence change time.

Note:

This section is disregarded in calculating the attributable income of a CFC: see section 410 of the Income Tax Assessment Act 1936 .