Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to this section, the attribution percentage of an attributable taxpayer in relation to a CFC or CFT at a particular time is the sum of:
(a) the direct attribution interest in the CFC or CFT held by the taxpayer at that time; and
(b) the aggregate of the indirect attribution interests in the CFC or CFT held by the taxpayer at that time.
(2) If, apart from this subsection, both of the following things would be counted in calculating the attribution percentage of an attributable taxpayer in relation to a CFC or CFT at a particular time:
(a) the holding of a direct attribution interest in an entity by any other entity;
(b) an entitlement to acquire that direct attribution interest;
only one of those things is to be taken into account.
(3) If:
(a) in calculating the percentage that would be the attribution percentage of an attributable taxpayer (apart from this subsection and subsection (5)) in relation to a CFC at a particular time (in this subsection called the test time ) regard was had to an attribution tracing interest of an eligible transferor in relation to a CFT, being an attribution tracing interest determined under subsection 360(1); and
(b) the attribution percentage referred to in paragraph (a) is greater than it would have been apart from subsection 360(1); and
(c) there are other eligible transferors in relation to the CFT at the test time; and
(d) the attributable taxpayer gives to the Commissioner, in accordance with a form approved, in writing, by the Commissioner, such information as is required by the form to be given;
the Commissioner may reduce the attribution percentage referred to in paragraph (a) by such amount as the Commissioner considers reasonable in the circumstances.
(4) If:
(a) in calculating the percentage that would be the attribution percentage of an attributable taxpayer (apart from this subsection and subsection (5)) in relation to a CFT (in this subsection called the attributing CFT ) at a particular time (in this subsection called the test time ) regard was had to:
(i) a direct attribution interest of the attributable taxpayer in relation to the attributing CFT, being direct attribution interest determined under subsection 356(2); or
(ii) an attribution tracing interest of an eligible transferor in relation to another CFT (in this subsection called the interposed CFT ); and
(b) the attribution percentage referred to in paragraph (a) is greater than it would have been apart from subsection 356(2) or 360(1), as the case may be; and
(c) at the test time, there are other eligible transferors in relation to the attributing CFT or the interposed CFT, as the case may be; and
(d) the attributable taxpayer gives to the Commissioner such information, and produces to the Commissioner such documents, as the Commissioner requires in connection with the operation of this subsection;
the Commissioner may reduce the attribution percentage referred to in paragraph (a) by such amount as the Commissioner considers reasonable in the circumstances.
(5) If, apart from this subsection, the aggregate of the attribution percentages of all the attributable taxpayers in relation to a CFC or CFT at a particular time would exceed 100%, the attribution percentage of each of those attributable taxpayers is the percentage calculated using the formula:
where:
"Individual percentage" means the percentage that would, apart from this subsection, be the attribution percentage of the attributable taxpayer concerned.
"Total percentage" means the aggregate of the percentages that would, apart from this subsection, be the attribution percentages of all the attributable taxpayers.