Foreign company assets
Section 768-540 of the ITAA 1997 determines the active foreign business assets of a foreign company.
An active foreign business asset is:
- an asset used or held for use by the company in the course of carrying on a business
- a share.
Assets excluded from this definition include:
- an asset that is taxable Australian property
- membership interest in an Australian resident company
- a financial instrument
- an interest in a trust or partnership
- a life insurance policy
- an asset used to derive passive investment income.