Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A FIF attribution credit arises for a FIF attribution account entity ( the eligible entity ) in relation to a taxpayer if:
(a) an amount is included in the taxpayer's assessable income under section 529 in respect of the foreign investment fund income of the eligible entity in respect of a notional accounting period of the eligible entity; or
(b) both of the following conditions apply:
(i) an amount is included in the taxpayer's assessable income under section 529 in respect of the foreign investment fund income of another FIF attribution account entity ( the other entity ) in respect of a notional accounting period of the other entity;
(ii) that amount was calculated by reference to another amount ( the section 576 amount ) that under section 576 was included in the notional income of the other entity because the other entity had an interest in the eligible entity; or
(c) each of the following conditions applies:
(i) the amount ( the section 529 amount ) is included in the taxpayer's assessable income under section 529 in respect of another FIF attribution account entity ( the first tier FIF ) in respect of a notional accounting period of the first tier FIF;
(ii) that amount was calculated by reference to another amount ( the section 576 amount ) that under section 576 was included in the notional income of the first tier FIF because the first tier FIF had an interest in another FIF attribution account entity ( the second tier FIF );
(iii) the section 576 amount was calculated by reference to an amount ( the section 579 amount ) that under section 579 was included in the notional income of the second tier FIF because the second tier FIF had an interest in the eligible entity; or
(d) a FIF attribution account payment that requires a FIF attribution debit for another entity in relation to the taxpayer is made to the eligible entity.
(2) Subject to the following provisions of this section, the amount of the FIF attribution credit is equal to the amount included in the assessable income or to the amount of the FIF attribution debit, as the case may be.
(3) If a FIF attribution credit arises under paragraph (1)(b) for an eligible entity, the amount of the FIF attribution credit is to be worked out using the formula:
In the formula:
"FIF income" means the amount of the foreign investment income included, in relation to the eligible entity, in the foreign investment fund income of the other entity for the notional accounting period referred to in paragraph (1)(b) of the other entity.
Section 529 amount means the amount included in the taxpayer's assessable income under section 529 in respect of the notional accounting period referred to in paragraph (1)(b) of the other entity.
"Notional income" means the notional income of the other entity under this Part in respect of the notional accounting period referred to in paragraph (1)(b) of the other entity.
(4) If a FIF attribution credit arises under paragraph (1)(c) for an eligible entity, the amount of the FIF 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:
Section 579 amount means the section 579 amount referred to in subparagraph (1)(c)(iii).
Section 576 amount means the section 576 amount referred to in subparagraph (1)(c)(ii).
"Notional income of the second tier FIF" means the notional income of the second tier FIF referred to in subparagraph (1)(c)(ii) under the calculation method for the notional accounting period of the first tier FIF referred to in subparagraph (1)(c)(i).
Section 529 amount means the section 529 amount referred to in subparagraph (1)(c)(i).
"Notional income of the first tier FIF" means the notional income of the first tier FIF referred to in subparagraph (1)(c)(i) under the calculation method for the notional accounting period referred to in that subparagraph.
(5) If subsection (3) applies to a taxpayer in respect of one or more eligible entities in respect of a particular section 529 amount, the amount of the FIF attribution credit arising under paragraph (1)(a) for the other entity referred to in paragraph (1)(b) is reduced by the FIF attribution credit or the sum of the FIF attribution credits that, except for subsection (6), would arise to the eligible entity or eligible entities under subsection (3).
(6) If subsection (4) 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 second tier FIF referred to in subparagraph (1)(c)(ii), the amount of the FIF attribution credit arising under paragraph (1)(b) for the second tier FIF is to be reduced by the FIF attribution credit or the sum of the FIF attribution credits arising for the eligible entity or eligible entities under subsection (4).
(7) The FIF attribution credit arises:
(a) in a paragraph (1)(a) case--at the end of the notional accounting period referred to in that paragraph; or
(b) in a paragraph (1)(b) 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)(b)(ii); or
(c) in a paragraph (1)(c) case--at the end of the notional accounting period of the eligible entity that gave rise to the section 579 amount referred to in subparagraph (1)(c)(iii); or
(d) in a paragraph (1)(d) case--when the FIF attribution account payment referred to in that paragraph is made.
(8) If, apart from this subsection, a FIF attribution credit would arise in relation to a FIF 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 529, then, subject to subsection (11):
(a) the FIF attribution credit does not arise for the partnership or trust; and
(b) a FIF attribution credit arises in relation to the FIF 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 set out in subsection (9); and
(ii) any taxpayer if, 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 set out in subsection (10); and
(iii) any taxpayer in the capacity of trustee of a trust if, 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 set out in subsection (10); and
(c) the amount of the FIF attribution credit referred to in paragraph (b) equals the amount of the tax detriment; and
(d) the FIF attribution credit referred to in paragraph (b) arises at the time when the FIF attribution credit referred to in paragraph (a) would, apart from this subsection, have arisen.
(9) The circumstances referred to in subparagraph (8)(b)(i) are:
(a) the circumstances set out in the following subparagraphs:
(i) as a result of the amount being included as mentioned in subsection (1), there is a tax detriment for:
(A) a partner in the Australian partnership; or
(B) a partner in another partnership ( the ultimate partnership ), if the tax detriment occurred because there were one or more partnerships or trusts (but not companies) interposed between the partner and the Australian partnership or the Australian trust; and
(ii) the partner is not, in respect of his or her interest in the net income or partnership loss of the Australian partnership or the ultimate partnership, in the capacity of trustee of a trust; or
(b) the circumstances set out in the following subparagraphs:
(i) as a result of the amount being included as mentioned in subsection (1), there is a tax detriment for:
(A) a beneficiary in the Australian trust; or
(B) a beneficiary in another trust ( the ultimate trust ), if the tax detriment occurred because there were one or more partnerships or trusts (but not companies) interposed between the beneficiary and the Australian partnership or the Australian trust; and
(ii) the beneficiary is not a partnership and is not, in respect of his or her share of the net income of the Australian trust or the ultimate trust, in the capacity of trustee of another trust.
(10) The circumstances referred to in subparagraph (8)(b)(ii) or (iii) are that, as a result of the amount being included as mentioned in subsection (1), there is a tax detriment for:
(a) the trustee of the Australian trust; or
(b) the trustee of another trust ( the ultimate trust ), if the tax detriment occurred because there were one or more partnerships or trusts (but not companies) interposed between the trustee and the Australian partnership or the Australian trust.
(11) Subsection (8) 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; or
(d) a resident public unit trust within the meaning of subsection 96A(4).