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  • 28. Overseas interests

    Z – Did you have overseas branch operations or a direct or indirect interest in a foreign trust, foreign company, controlled foreign entity or transferor trust? Print X in the appropriate box at Z item 28.

    Overseas branch operations include:

    • business operations carried on by an Australian resident entity at or through a fixed place of business in another country
    • business operations carried on by a foreign resident entity at or through a fixed place of business in Australia.

    You must answer Yes if the company derived a dividend or other amount that is treated as non-assessable non-exempt income under section 23AH, 23AI, 23AK, 99B(2A) of the ITAA 1936 or sub-division 768-A in the ITAA 1997.

    If the answer is yes, complete the International dealings schedule 2021.The ‘interests’ in item 28 that will require the entity to complete the schedule are those where:

    • the entity has an interest in a controlled foreign company (CFC) or trust (CFT)
    • the entity has transferred property, at any time, including money or services, to a non-resident trust, or is able to influence the decisions relating to a non-resident trust, or
    • the entity held a direct voting percentage of 10% or more in a foreign company and it had a CGT event happening to a share in the foreign company.

    An interest in a CFC or CFT may be either direct or indirect, and has the same meaning as set out in Division 3 of Part X of the ITAA 1936.

    For the purposes of the CFC rules, do not trace interests through an Australian entity. For example, if your company has an interest in an Australian trust which owns a CFC, your company is not regarded as having a direct or indirect interest in the CFC, although your company must still include any attributable income to which it was presently entitled as its assessable income.

    A company has an interest in a transferor trust if the company has ever made, or caused to be made, a transfer of property or services to a non-resident trust. ‘Transfer’, ‘property’ and ‘services’ are defined in section 102AAB of the ITAA 1936. Sections 102AAJ and 102AAK of the ITAA 1936 provide guidance on whether there has been a transfer or deemed transfer of property or services to a non-resident trust.

    29. Thin capitalisation

    O – Did the thin capitalisation provisions affect you?

    For information on whether the thin capitalisation provisions affect you, see Appendix 3.

    Print X in the appropriate box at O item 29. If the answer is yes, complete and attach an International dealings schedule 2021.

    30. Transactions with specified countries

    Did you directly or indirectly send to, or receive from, one of the countries specified in the instructions, any funds or property? OR

    Do you have the ability or expectation to control, whether directly or indirectly, the disposition of any funds, property, assets or investments located in, or located elsewhere but controlled or managed from one of those countries?

    Print X in the appropriate box at I item 30.

    The specified countries are listed below:

    • Andorra
    • Anguilla
    • Antigua and Barbuda
    • Aruba
    • Bahamas
    • Bahrain
    • Barbados
    • Belize
    • Bermuda
    • British Virgin Islands
    • Cayman Islands
    • Cook Islands
    • Curacao
    • Cyprus
    • Dominica
    • Gibraltar
    • Grenada
    • Guernsey
    • Hong Kong
    • Ireland
    • Isle of Man
    • Jersey
    • Labuan (in Malaysia)
    • Liberia
    • Liechtenstein
    • Luxembourg
    • Mauritius
    • Monaco
    • Montserrat
    • Nauru
    • Netherlands
    • Niue
    • Panama
    • Republic of the Marshall Islands
    • Sint Maarten (Dutch part)
    • Samoa
    • San Marino
    • Seychelles
    • Singapore
    • St Kitts and Nevis
    • St Lucia
    • St Vincent and the Grenadines
    • Switzerland
    • Turks and Caicos Islands
    • US Virgin Islands
    • Vanuatu

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    Last modified: 27 May 2021QC 64886