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  • Section 1 - General assumptions for working out the attributable income of a CFC



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

    End of attention

    Attributable income is included directly in your assessable income. It is not necessary to aggregate amounts of attributable income as you trace through a chain of CFCs.

    Example 15
    Attribution directly to taxpayer

    Assume you wholly own a foreign company which, in turn, wholly owns another foreign company. Also assume that the first company has $300,000 attributable income and the second company has $200,000 attributable income.

    You include an amount in your assessable income as follows:

    Like this

    Not like this

    DO include $300,000 from the first company and $200,000 from the second in your income

    DO NOT include $200,000 from the second company in the income of the first company, and $500,000 income from the first company in your own income

    Last modified: 05 Dec 2006QC 17522