Treasury Laws Amendment (Tax Integrity and Other Measures No. 2) Act 2018 (84 of 2018)

Schedule 2   Other effects of foreign income tax deductions

Part 2   Foreign equity distributions

Income Tax Assessment Act 1936

5   At the end of section 404

Add:

(2) For the purpose of applying this Act in calculating the attributable income of the eligible CFC, disregard paragraph 768-5(1)(d) of the Income Tax Assessment Act 1997 if:

(a) the eligible CFC receives, either directly or indirectly through one or more interposed trusts or partnerships, a foreign equity distribution (within the meaning of the Income Tax Assessment Act 1997) from a company; and

(b) at the time the distribution is made, both the eligible CFC and the company are residents of the same listed country or unlisted country.