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Part 1 - Are you subject to the CFC measures?

4 December 2006

The accruals tax system may apply to you if you are an Australian resident who has a substantial interest in a CFC. This part explains:

  • when a foreign company is a CFC
  • the types of interests in a foreign company that are taken into account in testing whether that company is a CFC
  • the size of an interest in a CFC you need before you must include an amount in your assessable income
  • how to determine the size of your interest in a CFC
  • whether income of a CFC is to be included in your assessable income for the current income year.
Summary of part 1

Section 1

Is there a CFC?

 

Section 2

Are you an attributable taxpayer?

 

Section 3

Is the CFC's income generally exempt from accruals taxation?

 

Section 4

What types of attribution can apply?

Dividend attribution on change of residence

Section 5

Do you have to work out the attributable income of a CFC?

Refer to chapter 3 and appendix 3

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