Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1988No. 11, 1988 - SECT 39

39. Where at any time (in this section called an "OBU commencing time") within
the period of 6 months after the day on which this section comes into
operation, a person (in this section called a "transitional person") becomes
or first becomes an offshore banking unit under section 128AE of the Principal
Act as amended by this Part (which Act as so amended is in this section called
the "amended Act"), the following provisions have effect:

   (a)  section 128GB of the amended Act applies in relation to interest paid
        by a transitional person after the person's OBU commencing time as if
        the person had been an offshore banking unit at all times during the
        period commencing on 2 July 1986 and ending immediately before the
        person's OBU commencing time;

   (b)  for the purposes of determining whether:

        (i)    an amount transferred by a transitional person after the
               person's OBU commencing time is tax exempt loan money of the
               person for the purposes of section 128NB of the amended Act;

        (ii)   income derived by a transitional person after the person's OBU
               commencing time was derived in respect of offshore banking
               transfers of the person for the purposes of paragraph 160AE (4)
               (a) of the amended Act; or

        (iii)  dividends paid by a transitional person after the person's OBU
               commencing time were paid out of profits derived by the person
               from the making of offshore banking transfers for the purposes
               of paragraph 160AE (4) (b) of the amended Act;
the amendments made by section 20, paragraph 21 (b) and section 23 of this Act
apply as if:

        (iv)   they had come into operation on 2 July 1986; and

        (v)    each transitional person had been an offshore banking unit at
               all times during the period commencing on 2 July 1986 and
               ending immediately before the person's OBU commencing time.