• # 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

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
 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 part B away from the amount in step 2 part B. B \$