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Meaning of tainted sales income

Last updated 4 December 2006

The tainted sales income of a CFC includes that part of gross turnover that represents sales income where the goods sold were purchased from or sold to:

  • an associate who is a Part X Australian resident, or
  • an associate who is not a Part X Australian resident but carried on business in Australia through a permanent establishment.
Sales which result in tainted sales income

Purchased from

Tainted sales?

Associated Australian

Yes

Associated non-resident (via Australian branch)

Yes

Unassociated Australian

No

Associated non-resident (not via Australian branch)

No

Unassociated non-resident

No

Purchases which result in tainted sales income on sale

Sold to

Tainted sales?

Associated Australian

Yes

Associated non-resident (via Australian branch)

Yes

Unassociated Australian

No

Associated non-resident (not via Australian branch)

No

Unassociated non-resident

No

QC18000