Worksheet 4: Working out the attributable income of a CFC

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 under Division 7 of Part X of the ITAA 1936

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 (c − 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)