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Worksheet 4: Working out the attributable income of a CFC

Last updated 30 July 2017

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

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

 

Other notional assessable income

 

Total = a

 

Step 2

Summary of the notional allowable deductions of the CFC

Amount

Subtotal

General notional allowable deductions

 

Sometimes exempt income (SEXI) loss

 

Converted CFC loss (subject to certain limitations)

 

Total = b

 

Converted CFC loss is the notional allowable deduction for previously unutilised losses which exist at the commencement of the statutory accounting period starting on or after 1 July 2008 and that have been converted in accordance with the transitional foreign loss rules for CFCs. A convertible CFC loss will be treated as a loss only for the purpose of applying Part X of ITAA 1936 to statutory accounting periods beginning on or after 1 July 2008.

Step 3

Attributable income of the CFC before any reduction for interim dividends paid (item a less item b) = c

Step 4

Interim dividends paid by the CFC from the amount at item c = d

Attributable income of the CFC ( 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

QC51231