Tax Laws Amendment (2007 Measures No. 4) Act 2007 (143 of 2007)

Schedule 1   New foreign income tax offset rules

Part 2   FIF income

Income Tax Assessment Act 1997

4   After section 768-530

Insert:

768-533 Foreign company that is a FIF using CFC calculation method - treatment as AFI subsidiary under this Subdivision

(1) This section applies if:

(a) the foreign company is a *FIF; and

(b) the holding company has made a choice under subsection 559A(1) of the Income Tax Assessment Act 1936 in relation to the foreign company in respect of a *notional accounting period of the foreign company; and

(c) because of the choice, the foreign company is treated under paragraph 559A(3)(c) of that Act as an AFI subsidiary (within the meaning of that Act) in relation to that holding company at a particular time.

Note: If the holding company makes a choice under subsection 559A(1) of the Income Tax Assessment Act 1936, the notional income and notional deductions of the foreign company (in its capacity as a FIF) is worked out under the FIF calculation method by reference to its notional assessable income and notional allowable deductions under Part X of that Act.

(2) For the purposes of this Subdivision, treat the foreign company as an AFI subsidiary in relation to that holding company at that time.