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
  • goodwill
  • 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
  • cash
  • an asset used to derive passive investment income.
    Last modified: 21 Feb 2012QC 25356