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  • 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

    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

                   

    Interest class

                   

    Offshore banking class

                   

    Modified passive class

                   

    Other class

                   

     

    Total:

    a

    $               

    Step 2

    Summary of the notional allowable deductions of the CFC. The subtotal for any class of income should not be more than the amount of income shown in step 1 for that class. If you work out a higher amount, reduce it to the amount in step 1 for that class.

    Class

    Amount $

     

    SEXI loss

     

    P/Y loss

     

    Subtotal

    Interest

                   

    +

                   

    +

                   

    =

                   

    Offshore banking

                   

    +

                   

    +

                   

    =

                   

    Modified passive

                   

    +

                   

    +

                   

    =

                   

    Other

                   

    +

                   

    +

                   

    =

                   

    Non-quarantined

    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - >

    =

                   

     

    Total:

    b

    $             

    Amount is the total of the notional allowable deductions of each class of income before any quarantining and previous years' losses. It does not include a sometimes exempt income loss.

    SEXI loss is the sometimes exempt income loss of each class of income.

    P/Y loss is the notional allowable deduction for previous years losses of a class of income.

    Step 3

    Attributable income of the CFC before any reduction for interim dividends paid - item aless item b.

    c

    $               

    Step 4

    Interim dividends paid by the CFC from the amount at item c.

    d

    $               

     

    Attributable income of the CFC

    (c - 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 away from the amount in step 2.


    B


    $               

      Last modified: 12 Sep 2016QC 18104