Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994 - SECT 13

13. Section 102AAU of the Principal Act is amended:

   (a)  by omitting from sub-subparagraph (1)(c)(viii)(B) "and" and
        substituting "or";

   (b)  by adding at the end of paragraph (1)(c) the following subparagraph:

"(ix) an excluded foreign investment fund income amount (see subsections (7)
and (8)); and";

   (c)  by adding at the end the following subsections:



"(7) For the purposes of subparagraph (1)(c)(ix), if:

   (a)  the non-resident trust estate concerned is a CFT; and

   (b)  under section 529, the assessable income of a year of income of the
        CFT includes an amount of foreign investment fund income that, under
        Part XI, accrued to the CFT from a FIF in respect of a notional
        accounting period of the FIF; and

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

   (d)  wholly or partly because of the holding of an attribution tracing
        interest in the CFT, section 456 applies at the end of the statutory
        accounting period of the CFC to the attributable taxpayer in relation
        to whom the attributable income is being calculated; and

   (e)  the FIF is the same entity as the CFC; then the amount of foreign
        investment fund income is an excluded foreign investment fund income
        amount for the purpose of calculating the attributable income in
        relation to the attributable taxpayer.



"(8) For the purposes of subparagraph (1)(c)(ix), if:

   (a)  the non-resident trust estate concerned is a CFT; and

   (b)  under section 529, the assessable income of a year of income of a CFT
        includes an amount of foreign investment fund income that, under Part
        XI, accrued to the CFT from a FIF in respect of a notional accounting
        period of the FIF; and

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

   (d)  wholly or partly because of the holding of an attribution tracing
        interest in the CFT, section 456 applies at the end of each of these
        statutory accounting periods of the CFC to the attributable taxpayer
        in relation to whom the attributable income is being calculated; and

   (e)  the FIF is the same entity as the CFC; then the amount of foreign
        investment fund income is an excluded foreign investment fund income
        amount for the purpose of calculating the attributable income in
        relation to the attributable taxpayer.



"(9) In subsections (7) and (8):
'attribution tracing interest' has the same meaning as in Part X;
'CFT' has the same meaning as in Part X;
'FIF' has the same meaning as in Part XI;
'notional accounting period' has the same meaning as in Part XI;
'statutory accounting period' has the same meaning as in Part X.".