Tax Laws Amendment (2005 Measures No. 3) Act 2005 (63 of 2005)

Schedule 2   International shipping and airline profits

Income Tax Assessment Act 1936

2   After subsection 23AH(14)

Insert:

(14A) This section does not apply to foreign income, or to a capital gain or capital loss, of a company to the extent that the income, gain or loss is from:

(a) the operation of ships or aircraft in international traffic at or through a PE of the company in a listed country or unlisted country; or

(b) things that are ancillary to that operation.

(14B) A company operates a ship or aircraft in international traffic if the company operates it for transporting passengers or goods between a place in one country and a place in another country.