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  • 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

    This question provides us with an understanding of the amount of non-assessable non-exempt income being derived in different tax jurisdictions and helps identify the nature of that income.

    The dollar amounts or values asked for in this question are all based on your tax records.

    To complete this question, work out the amount of the foreign income you derived that is non-assessable non-exempt under each of sections 23AH, 23AI or 23AJ of the ITAA 1936 and the amount of this income derived from entities resident in each of the following location categories:

    • listed country
    • specified country
    • other unlisted country.

    If you had foreign branch operations or any direct or indirect interests in foreign companies or foreign trusts, answer 'Yes' at label A of question 24 and complete the required labels. If you answer 'Yes', you will need to include the amounts of foreign non-assessable non-exempt income you derived under any of the following:

    • section 23AH - foreign branch income of Australian companies. The amount of income reported under section 23AH should include the total of both income and capital gains that are non-assessable non-exempt under that section.
    • section 23AI - amounts paid out of attributed CFC income.
    • section 23AJ - qualifying non-portfolio dividends from foreign companies.

    If you have no non-assessable non-exempt income under one or more of the above sections, leave the corresponding labels blank.

    At item 24a, label B, write the amount of your non-assessable non-exempt income under section 23AH derived from your listed country foreign branch operations.

    At item 24a, label C, write the amount of your non-assessable non-exempt income under section 23AH derived from your specified country foreign branch operations.

    At item 24a, label D, write the amount of your non-assessable non-exempt income under section 23AH derived from your other unlisted country foreign branch operations.

    At item 24b, label E, write the amount of your non-deductible expenses incurred in earning or deriving your non-assessable non-exempt income under section 23AH.

    At item 24c, label B, write the amount your non-assessable non-exempt income under section 23AI in respect of your attributed income from your CFCs in listed countries.

    At item 24c, label C, write the amount of your non-assessable non-exempt income under section 23AI in respect of your attributed income from your CFCs in specified countries.

    At item 24c, label D, write the amount of your non-assessable non-exempt income under section 23AI in respect of your attributed income from your CFCs in other unlisted countries.

    At item 24d, label B, write the amount of your non-assessable non-exempt income under section 23AJ for non-portfolio dividends from companies in listed countries.

    At item 24d, label C, write the amount of your non-assessable non-exempt income under section 23AJ for non-portfolio dividends from companies in specified countries.

    At item 24d, label D, write the amount of your non-assessable non-exempt income under section 23AJ for non-portfolio dividends from companies in other unlisted countries.

    Further Information

    For more information about when an entity has an interest in a foreign company or foreign trust, refer to the Foreign income return form guide.

    For guidance in working out if these provisions apply to you, refer to sections 23AH, 23AI or 23AJ of the ITAA 1936.

    For the table of:

    • specified countries and codes, refer to Appendix 1
    • listed countries and codes, refer to Appendix 3.

    All foreign countries, including section 404 countries, not listed in the tables of listed countries and specified countries are included in the other unlisted country category.

    End of further information

    Example

    An Australian resident has the following non-assessable non-exempt income under the relevant sections as set out in the table.

    Country

    Section 23AH amount

    Section 23AI amount

    Section 23AJ amount

    Branch in the United States

    12,000,000

     

     

    Liechtenstein

     

    42,000

     

    Belgium

     

    630,000

     

    Belgium

     

     

    450,000

    As the United States is a listed country and the income is non-assessable non-exempt under section 23AH, the entity writes $12,000,000 at item 24a, label B.

    As Liechtenstein is a specified country and the income is non-assessable non-exempt income under section 23AI, $42,000 is written at item 24c, label C.

    As Belgium is not a listed country or a specified country it is an 'other unlisted country'. Consequently, the non-assessable non-exempt income under section 23AI of $630,000 is written at item 24c, label D and the non-assessable non-exempt income under 23AJ of $450,000 is written at item 24d, label D.

    All other labels are left blank.

    The Australian resident completes question 24

    Last modified: 08 Aug 2014QC 26054