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  • Worksheet 4: Working out the attributable income of a CFC

    Use this worksheet to work out the attributable income of a CFC and the amount to include in your assessable income.

    Part A Working out attributable income under Division 7 of Part X of the ITAA 1936

    Step 1

    Summary of the notional assessable income of the CFC

    Category of notional assessable income

    Amount

    Net capital gain under Parts 3-1 and 3-3 of ITAA 1997

    $

    Other notional assessable income

    $

    Total

    (a)$

    Step 2

    Summary of the notional allowable deductions of the CFC

    Amount

    Subtotal

    General notional allowable deductions

    $

    Sometimes exempt income (SEXI) loss

    $

    Converted CFC loss (subject to certain limitations)

    $

    Total

    (b)$

    Converted CFC loss is the notional allowable deduction for previously unutilised losses which exist at the commencement of the statutory accounting period starting on or after 1 July 2008 and that have been converted in accordance with the transitional foreign loss rules for CFCs. A convertible CFC loss will be treated as a loss only for the purpose of applying Part X of ITAA 1936 to statutory accounting periods beginning on or after 1 July 2008.

    Step 3

    Attributable income of the CFC before any reduction for interim dividends paid (item a less item b) = c

    Step 4

    Interim dividends paid by the CFC (from the amount at item c) = d

    Attributable income of the CFC ( d): $________ (A)

    Part B Working out your share of attributable income

    Step 1

    Insert your attribution percentage in the CFC at the end of the CFC’s statutory period (as previously worked out in worksheet 1).

    Step 2

    Work out your assessable income (multiply the amount at item A part A by the attribution percentage).

    Step 3

    Insert the reduction amount you can claim if the CFC has income or gains which were accruals-taxed in a foreign country.

    Step 4

    Take the amount in step 3 part B away from the amount in step 2 part B:

    $________ (B)

    Last modified: 09 Sep 2021QC 66597