Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 523

                   If:

                     (a)  at the end of the notional accounting period of a foreign company a taxpayer had an interest in the foreign company that consisted of shares included in a class of shares that were quoted on the stock market of an approved stock exchange; and

                     (b)  throughout that period, or the part of that period in which the taxpayer had that interest, as the case may be:

                              (i)  shares in the foreign company that were included in that class were widely held, and actively traded on a regular basis, on a stock market of an approved stock exchange; and

                             (ii)  the foreign company was engaged in the active carrying on of any 2 or more of the following activities:

                                        (A)  construction;

                                        (B)  development of real property through capital improvement;

                                        (C)  receipt of rental income from commercial real property owned by the company, being property in respect of which the management, maintenance and security services were principally provided by directors or employees of the company or by a wholly‑owned subsidiary of the company that was principally engaged in carrying on the business of providing those services through directors or employees of that subsidiary;

                                        (D)  provision of management services in respect of real property by directors or employees of the company;

                                         (E)  acting as agent in connection with the sale or purchase of commercial real property;

                                         (F)  general insurance business of a kind that the company was authorised under the law of its place of residence to carry on;

                                        (G)  life insurance business of a kind that the company was authorised under the law of its place of residence to carry on;

                                        (H)  eligible activities within the meaning of Division 3; and

                     (c)  having regard to all the activities in which the company engaged in that period or that part of that period, it would be concluded that any 2 or more of the activities referred to in subparagraph (b)(ii), taken together, were the activities in which the company was principally engaged throughout that period or that part of that period, as the case may be;

then the taxpayer's interest is disregarded for the purposes of the application of the operative provision to the taxpayer in relation to the foreign company in respect of the notional accounting period.