Permanent establishment in a listed country
A resident company includes in the calculation of its net capital gains any capital gain or capital loss as a result of a CGT event happening in relation to a tainted asset that is used in carrying on a business through a permanent establishment in a listed country if:
- the gain is also eligible designated concession income, or
- there is a loss but there would have been eligible designated concession income if the loss had instead been a gain.
Permanent establishment in an unlisted country
A resident company includes in the calculation of its net capital gains any capital gain or capital loss arising as a result of a CGT event happening in relation to a tainted asset that is used in carrying on a business through a permanent establishment in an unlisted country.
Effect of non-assessable non-exempt income treatment on a resident company's deductions, losses and foreign tax credits
A deduction is not allowable for:
- outgoings or expenses connected to branch income and gains that are non-assessable non-exempt income
- capital losses on the disposal of a branch asset if, had there been a profit on the disposal, the profit would have been non-assessable non-exempt income.
Current year losses or carried forward losses of a resident company are not reduced by branch income or gains that are non-assessable non-exempt income.
Foreign tax credits are not allowed for foreign taxes paid on branch income that is non-assessable non-exempt income.