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  • Worksheet 3: Working out amounts from partnerships to include in the tainted income ratio

    Use a separate worksheet for each partnership. All amounts are to be in the currency in which the accounts of the partnership are kept. Do not convert to Australian dollars.

    Part A Working out the partnership’s gross turnover

    Step 1

    Work out the partnership’s gross revenue as shown in the partnership’s accounts

    • $_______ (a)

    Step 2

    Work out the following amounts included in a.

    Do not include these amounts in the ratio.

    Step 2 worksheet

    Category of gross revenue

    Amount

    Amounts already assessed to the CFC in Australia

    $

    Amounts derived through a branch in a listed country that are not EDCI in relation to any listed country and are subject to tax in a listed country

    $

    Non-portfolio dividends from a foreign company

    $

    Dividends out of profits previously attributed

    $

    Franked dividends

    $

    Trust amounts

    $

    Total

    (b)$

    Step 3

    Work out the following gross amounts included in (a).

    Do not count amounts already excluded under step 2. The net amounts are added back at step 4.

    Step 3 worksheet

    Category of gross revenue

    Amount

    Revenue from commodity contracts

    $

    Revenue from exchange gains

    $

    Revenue from other asset disposals

    $

    Total

    (c)$

    Step 4

    Work out net gains included in gross turnover.

    Do not count amounts that fall into the categories in step 2.

    Step 4 worksheet

    Category of net gain

    Amount $

    Net commodity gain

    $

    Net exchange gain

    $

    Net gain from other asset disposals

    $

    Total

    (d)$

    Gross turnover of the partnership (a – b – c + d) = $________(A)

    Part B Working out the partnership’s gross tainted turnover

    Step 1

    Work out the partnership’s gross revenue that is passive income after exclusions (item a from part A less items b and c from part A) that falls into the following categories of passive income:

    Step 1 worksheet

    Category of passive income

    Amount

    Tainted interest income

    $

    Annuities

    $

    Tainted royalty income

    $

    Tainted rental income

    $

    Dividends

    $

    Other passive income

    $

    Total

    (a)$

    Step 2

    Work out the partnership’s gross revenue that is tainted sales income after exclusions (item a from part A less items b and c from part A). $________ (b)

    Step 3

    Work out the partnership’s gross revenue that is tainted services income after exclusions (item a from part A less items b and c from part A). $________ (c)

    Step 4

    Work out the partnership’s net gains included in gross turnover that are tainted income.

    Step 4 worksheet

    Category

    Amount

    Net commodity gain (from part A)

    $

    Net tainted commodity gain

    $

    Smaller amount

    $

    Net exchange gain (from part A)

    $

    Net tainted exchange gain

    $

    Smaller amount

    $

    Net gain from assets (from part A)

    $

    Net gain from tainted assets

    $

    Smaller amount

    $

    Total smaller amounts

    (d)$

    Gross tainted turnover of the partnership (a + b + c + d) = $________ (B)

    Part C CFC’s share of the gross turnover and the gross tainted turnover

    CFC’s percentage interest in the net income of the partnership:

    •       %

    CFC’s share of the gross turnover of the partnership:

    Percentage interest in net income from above × (A from part A) = $            (C)

    Use this amount to fill in step 5 of part A of worksheet 2.

    CFC’s share of the gross tainted turnover of the partnership:

    Percentage interest in net income from above × (B from part B) = $            (D)

    Use this amount to fill in step 5 of part B of worksheet 2.

      Last modified: 09 Sep 2021QC 66597