• The general rule

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    The general rule is that only amounts that arise from certain transactions which are classified as prone to tax minimisation are taken into account - called 'tainted income'. These will only be taken into account if a CFC is not mainly engaged in genuine business activities - that is, where the CFC fails the active income test.

    Last modified: 05 Dec 2006QC 17522