Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 830.20

  (1)   This section sets out the modifications of the Income Tax Assessment Act 1936 that, if section   830 - 15 of this Act so provides, apply in working out for a taxpayer:

  (a)   the attributable income of a CFC for the statutory accounting period that ended in an income year; or

  (b)   the notional income of a FIF for the notional accounting period that ended in an income year.

CFC--residence

  (2)   If the CFC is not a resident of a particular listed country or a particular unlisted country for the purposes of Part   X of the Income Tax Assessment Act 1936 (including after applying section   331 of that Act), then for the purposes of that Part, the CFC is taken to be a resident of the country under whose laws it was formed.

CFC--foreign tax paid by taxpayer

  (3)   For the purpose of subsection   393(1) of the Income Tax Assessment Act 1936 , if the taxpayer paid foreign tax (within the meaning of that Act) (the actual foreign tax ) on its interest in an amount included in the notional assessable income of the CFC for the statutory accounting period, then the CFC is taken to have paid foreign tax (within the meaning of that Act) in respect of the amount equal to the actual foreign tax divided by the taxpayer's direct attribution interest in the CFC at the end of the statutory accounting period.

CFC--foreign tax paid by another CFC

  (4)   For the purpose of subsection   393(1) of the Income Tax Assessment Act 1936 , if:

  (a)   on the assumption in paragraph   830 - 15(1)(c) of this Act, another CFC (the tracing CFC ) would have been a partner in the foreign entity that the CFC mentioned in subsection   (1) of this section (the foreign hybrid CFC ) would have been; and

  (b)   the taxpayer had an attribution tracing interest in the tracing CFC that was taken into account in calculating the taxpayer's attribution percentage for the foreign hybrid CFC at the end of the statutory accounting period; and

  (c)   the tracing CFC paid foreign tax (within the meaning of that Act) (the actual foreign tax ) on its interest in an amount included in the notional assessable income of the foreign hybrid CFC for the statutory accounting period;

then the foreign hybrid CFC is taken to have paid foreign tax, (within the meaning of that Act) in respect of the amount included in its notional assessable income, equal to the actual foreign tax divided by the tracing CFC's direct attribution interest in the foreign hybrid CFC at the end of the statutory accounting period.

FIF--foreign tax paid by taxpayer

  (5)   For the purpose of section   573 of the Income Tax Assessment Act 1936 , if the taxpayer paid foreign tax (within the meaning of that Act) (the actual foreign tax ) on its interest in an amount included in the notional income of the FIF for the notional accounting period, then the FIF is taken to have paid foreign tax (within the meaning of that Act) in respect of that amount equal to the actual foreign tax divided by the attribution percentage applicable under section   581 of that Act to the taxpayer in respect of the taxpayer's interests in the FIF at the end of the notional accounting period.

Table of Subdivisions

832 - A   Application of Division   832 of the Income Tax Assessment Act 1997

Table of sections

832 - 10   Application of Division   832 of the Income Tax Assessment Act 1997 (other than imported hybrid mismatch rule)

832 - 15   Application of imported hybrid mismatch rule