• Question 24

    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

    Provide the amounts included in your assessable income under the particular sections of the ITAA 1936. This information is required to assess the risk of assessable foreign income not being correctly accounted for under the relevant tax legislation.

    If you have an amount of foreign income that is assessable under sections 456, 457 or 459A of the ITAA 1936, enter the total amount assessable under each of the sections at the appropriate labels.

    Further Information

    For more information about working out if these provisions apply to you, including an overview of the necessary calculations, refer to Foreign income return form guide.

    For companies conducting banking or insurance activities (AFI or Australian financial institutions), there are special rules that apply. These rules are not discussed in the guide and you should refer to Part X of the ITAA 1936.

    End of further information

    Labels A, B, C and D
    If you included attributable income in your assessable income for the income year under section 456 of the ITAA 1936, you need to complete A, B, C and D as required.

    Section 456 of the ITAA 1936 includes certain amounts of attributable income of a CFC in the assessable income of an Australian resident taxpayer that is an attributable taxpayer.

    Further Information

    To help work out the amounts to include, refer to:

    End of further information

    To complete A, B and C, you are required to identify the residency of each CFC or CFT for which you included attributable income in assessable income under section 456 of the ITAA 1936 for the income year. The tables of listed countries are in appendix 4 and specified countries are in appendix 2 With reference to the tables, work out the amounts referrable to those entities in each of the location categories:

    • listed country
    • specified country
    • other unlisted country.

    At A, enter the attributable income included in your assessable income from your CFCs and CFTs identified as residents of listed countries.

    At B, enter the attributable income included in your assessable income from your CFCs and CFTs identified as residents of specified countries.

    At C, enter the attributable income included in your assessable income from your CFCs and CFTs identified as residents of other unlisted countries. Include at this label any attributable income included in assessable income under section 456 of the ITAA 1936 that you have not already included at A and B.

    At D, enter the total of A, B and C.

    Example

    An Australian resident shareholder (attributable taxpayer) includes section 456 attributable income in its assessable income from CFCs and CFTs which are resident of countries set out in the following table.

    CFC or CFT country of residence

    Section 456 attributable income amount

    Canada

    1,010,000

    Niue

    501,000

    Panama

    629,000

    Italy

    459,000

    Total

    2,599,000

    As Canada is a listed country, the section 456 amount entered at A is $1,010,000.

    As Niue and Panama are specified countries, the section 456 amount entered at B is:

    Niue

    $501,000

    Panama

    $629,000

    Total entered at B

    $1,130,000

    As Italy is an other unlisted country, the section 456 amount entered at C is $459,000.

    The total amount of section 456 attributable income entered at D is $2,599,000.

    Example of question 24 completed

    Label E
    If you included an amount of foreign income in your assessable income for the income year under section 457 of the ITAA 1936, you need to complete E.

    Section 457 of the ITAA 1936 includes in the assessable income of a resident taxpayer, who is an attributable taxpayer in relation to a CFC, certain amounts in respect of a change of residence of the CFC from an unlisted country to a listed country or to Australia.

    Further Information

    To help work out the amounts to include, refer to:

    End of further information

    To complete E, add all amounts included in your assessable income under section 457 of the ITAA 1936 and enter this total at E.

    Label F
    If you included an amount of foreign income in your assessable income for the income year under section 459A of the ITAA 1936, you need to complete F.

    Section 459A of the ITAA 1936 includes amounts in an attributable taxpayer's assessable income where the amount that accrues to the benefit of a CFC or CFC is not taxed in Australia.

    Further Information

    To help work out the amounts to include, refer to section 459A of the ITAA 1936.

    End of further information

    To complete F, add all amounts included in your assessable income under section 459A of the ITAA 1936 and enter this total at F.

    Last modified: 09 Nov 2011QC 24292