Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 494

             (1)  If:

                     (a)  an amount of foreign investment fund income that accrued to a taxpayer from a FIF in respect of a notional accounting period of the FIF would, apart from this subsection, be included in the taxpayer's assessable income of a year of income; and

                     (b)  a statutory accounting period of a CFC coincides with that notional accounting period of the FIF; and

                     (c)  section 456 applies to the taxpayer at the end of the statutory accounting period of the CFC; and

                     (d)  the CFC is the same entity as the FIF;

the operative provision does not apply to the taxpayer in relation to the FIF in respect of the notional accounting period of the FIF referred to in paragraph (a).

             (2)  If:

                     (a)  an amount of foreign investment fund income that accrued to a taxpayer from a FIF in respect of a notional accounting period of the FIF would, apart from this subsection, be included in the taxpayer's assessable income of a year of income; and

                     (b)  each of 2 or more statutory accounting periods of a CFC occurs partly within that notional accounting period of the FIF; and

                     (c)  section 456 applies to the taxpayer at the end of each of those statutory accounting periods of the CFC; and

                     (d)  the CFC is the same entity as the FIF;

the operative provision does not apply to the taxpayer in relation to the FIF in respect of the notional accounting period of the FIF referred to in paragraph (a).