Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An attribution credit arises for an attribution account entity (in this section called the eligible entity ) in relation to a taxpayer if:
(a) an amount is included in the taxpayer's assessable income under section 456 in respect of the attributable income of the eligible entity for a statutory accounting period; or
(aa) both the following conditions apply:
(i) an amount is included in the taxpayer's assessable income under section 456 in respect of the attributable income of another attribution account entity ( the other entity ) for a statutory accounting period of the other entity;
(ii) that amount was calculated by reference to another amount ( the Part XI amount ) that under Part XI was included in the attributable income of the other entity because the other entity had an interest in the eligible entity; or
(ab) each of the following conditions applies:
(i) an amount is included in the taxpayer's assessable income under section 456 in respect of the attributable income of another attribution account entity ( the other entity ) for a statutory accounting period of the other entity;
(ii) the amount so included was calculated by reference to another amount that under Part XI was included in the attributable income of the other entity because the other entity had an interest in another attribution account entity ( the interposed entity );
(iii) the other amount referred to in subparagraph (ii) of this paragraph was calculated by reference to an amount ( the section 576 amount ) that under section 576 was included in the notional income of the interposed entity because the interposed entity had an interest in the eligible entity; or
(b) an amount is included in the taxpayer's assessable income under section 457 as a result of a change of residence by the eligible entity; or
(d) an attribution account payment that requires an attribution debit for another entity in relation to the taxpayer is made to the eligible entity.
(2) Subject to subsections (2A), (2B), (3) and (4), the amount of the attribution credit is equal to the amount included in assessable income or to the amount of the attribution debit, as the case may be.
(2A) If an attribution credit arises under paragraph (1)(aa) for an eligible entity, the amount of the attribution credit is to be worked out using the formula:
In the formula:
"FIF income" means the amount of the foreign investment fund income included, in relation to the eligible entity, under Part XI in the notional assessable income of the other entity for the statutory accounting period of the other entity referred to in paragraph (1)(aa).
Section 456 amount means the amount included in the taxpayer's assessable income under section 456 in respect of the statutory accounting period referred to in paragraph (1)(aa) of the other entity.
"Notional assessable income" means the notional assessable income of the other entity under Part X for the statutory accounting period referred to in paragraph (1)(aa).
(2B) If an attribution credit arises under paragraph (1)(ab) for an eligible entity, the amount of the attribution credit is to be worked out using the formula:
For the purposes of this subsection:
"FIF income" means the amount worked out using the formula:
"FIF income of the eligible entity" means the amount of the foreign investment fund income included, in relation to the eligible entity, under section 576 in the notional income of the interposed entity referred to in subparagraph (1)(ab)(ii) for the notional accounting period of the interposed entity that ends during the statutory accounting period of the other entity referred to in subparagraph (1)(ab)(i).
Section 529 amount means the amount included in the notional assessable income of the other entity referred to in subparagraph (1)(ab)(i) under section 529 in respect of the statutory accounting period referred to in that subparagraph because of an interest that that other entity holds in the interposed entity.
"Notional income of the interposed entity" means the notional income of the interposed entity referred to in subparagraph (1)(ab)(ii) under Part XI for the notional accounting period of that entity that ends during the statutory accounting period of the other entity referred to in subparagraph (1)(ab)(ii).
Section 456 amount means the amount included in the taxpayer's assessable income under section 456 in respect of the statutory accounting period referred to in subparagraph (1)(ab)(i) of the other entity referred to in that subparagraph.
"Notional assessable income" means the notional assessable income of the other entity referred to in subparagraph (1)(ab)(i) under Part X for the statutory accounting period referred to in that subparagraph.
(2C) If subsection (2A) applies to a taxpayer in respect of one or more eligible entities in respect of a particular section 456 amount, the amount of the attribution credit arising under paragraph (1)(a) for the other entity referred to in paragraph (1)(aa) is reduced by the attribution credit or the sum of the attribution credits that, except for subsection (2D), would arise for the eligible entity or eligible entities under subsection (2A).
(2D) If subsection (2B) applies to a taxpayer in respect of one or more eligible entities in respect of a particular amount included in the notional income of the interposed entity referred to in subparagraph (1)(ab)(ii), the amount of the attribution credit arising under paragraph (1)(aa) for the interposed entity is to be reduced by the attribution credit or the sum of the attribution credits arising for the eligible entity or eligible entities under subsection (2B).
(4) Where:
(a) the attribution credit arises under paragraph (1)(d) in relation to an attribution account payment consisting of a non‑portfolio dividend paid to the eligible entity, where the eligible entity is a company; and
(b) the eligible entity is or will be liable to pay an amount of foreign tax on the attribution account payment or on amounts that include the attribution account payment;
then the amount of the attribution credit is reduced by the amount calculated using the formula:
where:
"Attribution account percentage" means the taxpayer's attribution account percentage for the attribution account entity.
"Foreign tax" means the amount of foreign tax, to the extent that it is attributable to the attribution account payment.
(5) The attribution credit arises:
(a) in a paragraph (1)(a) case where subsection 319(6) does not apply to the statutory accounting period referred to in that paragraph--at the end of the statutory accounting period; or
(aaa) in a paragraph (1)(a) case where subsection 319(6) applies to the statutory accounting period referred to in that paragraph--at the beginning of the statutory accounting period; or
(ab) in a paragraph (1)(ab) case--at the end of the notional accounting period of the eligible entity that gave rise to the section 576 amount referred to in subparagraph (1)(ab)(iii); or
(b) in a paragraph (1)(b) case--subject to subsection (8), at the time of the change of residence referred to in that paragraph; or
(d) in a paragraph (1)(d) case--when the attribution account payment referred to in that paragraph is made.
(6) Where, apart from this subsection, an attribution credit would arise in relation to an attribution account entity for an Australian partnership or an Australian trust in respect of an amount included in the assessable income of the partnership or trust of a year of income under section 456 or 457, then, subject to subsection (7):
(a) the attribution credit does not arise for the partnership or trust; and
(b) an attribution credit arises in relation to the attribution account entity for:
(i) any taxpayer for whom, as a result of the amount being so included, a tax detriment would arise in circumstances referred to in paragraphs 460(2)(a) and (b) or paragraphs 460(3)(a) and (b); and
(ii) any taxpayer where, as a result of the amount being so included, a tax detriment would arise for the trustee of a trust in which the taxpayer is a beneficiary, in respect of an amount assessable to the trustee under section 98 in respect of the taxpayer's share of the net income of the trust, in circumstances referred to in paragraph 460(4)(a); and
(iii) any taxpayer in the capacity of trustee of a trust, where, as a result of the amount being so included, a tax detriment would arise for the taxpayer in respect of an amount assessable to the taxpayer under section 99 or 99A, in circumstances referred to in paragraph 460(4)(a); and
(c) the amount of the attribution credit referred to in paragraph (b) equals the amount of the tax detriment, as reduced by any application of section 460; and
(d) the attribution credit referred to in paragraph (b) arises at the time when the attribution credit referred to in paragraph (a) would, but for this subsection, have arisen.
(7) Subsection (6) does not apply to an Australian trust that is, in relation to the year of income referred to in that subsection:
(a) a corporate unit trust within the meaning of Division 6B of Part III; or
(b) a public trading trust within the meaning of Division 6C of that Part; or
(c) a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust.
(8) If:
(a) a company ceases to be resident in an unlisted country and becomes a resident of a listed country; and
(b) an amount (in this subsection called the section 457 amount ) is included in a taxpayer's assessable income under section 457 as a result of the change of residence; and
(c) a particular part (in this subsection called the eligible part ) of the section 457 amount is attributable to a hypothetical disposal of a particular asset of the company at the residence change time; and
(d) it might reasonably be expected that, if and when the company actually disposes of the asset, so much of the gain derived by the company on the actual disposal of the asset that accrued before the residence change time will be subject to tax in the listed country;
the taxpayer may elect to defer the timing of so much of the paragraph (1)(b) attribution credit as is attributable to the eligible part from the time of the change of residence referred to in that paragraph until immediately before the payment by the company of a dividend out of the gain derived by the company on the actual disposal of the asset.
(9) An election for the purposes of subsection (8):
(b) is irrevocable; and
(c) has no effect unless it is made:
(i) within 6 months after the end of the later of the following years of income:
(A) the year of income in which the residence change time took place;
(B) the year of income in which this subsection commenced; or
(ii) within such further period as the Commissioner allows.