Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsections (2), (3) and (4), this section applies to:
(a) income derived (otherwise than as a trustee) from sources outside Australia by a person being a Territory resident or by a company being a Territory company in relation to the year of income; and
(b) income derived from sources outside Australia by a trustee of a trust that is a Territory trust in relation to the year of income.
(2) This section does not apply to income consisting of a dividend paid by a company that is a resident of Australia other than a company that is a resident of Australia by reason only of the operation of subsection 7A(2).
(3) Subject to subsection (4), this section does not apply to income if the Commissioner is satisfied that the income has been, or may be, applied for the benefit of a person not being a Territory resident, or for the benefit of a company not being a Territory company in relation to the year of income of the company in which the income has been or may be applied.
(4) Subsection (3) does not exclude the operation of this section in relation to any income if the Commissioner is satisfied that the application of the income as mentioned in that subsection resulted, or would result, from an agreement or transaction that was a genuine commercial or family dealing and was not entered into or effected for the purpose, or for purposes that included the purpose, of avoiding liability to taxation.
Note: Section 960‑255 of the Income Tax Assessment Act 1997 may be relevant to determining family relationships for the purposes of subsection (4).
(5) Income to which this section applies is exempt from income tax.