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  • Exemption for an interest in a foreign bank

    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

    You can get an exemption for your interest in a foreign bank if the following requirements are satisfied.

    • Approved stock exchange

    You must hold shares in the bank of a class listed on a stock exchange approved in regulation 152I, Schedule 12 of the Income Tax Regulations 1936 (the Regulations). See Appendix 1: Approved stock exchanges for more information. Unlisted shares issued by some banks as a substitute for deposits with the bank would not satisfy this criterion.

    • Trading requirement

    The class of shares you hold in the bank must be widely held and actively traded on a regular basis on a stock market of an approved stock exchange during the period for which you are seeking the exemption.

    • Authorised to carry on banking business

    The bank must be authorised under the law of its place of residence to carry on banking business.

    • Principally engaged in the banking business

    The bank must be principally engaged in the active carrying on of banking business. [section 503]

    Last modified: 01 Apr 2020QC 18001