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Question 23

Last updated 7 August 2014

This question will help us to identify if there is a risk that a transaction has occurred to which section 47A of the ITAA 1936 would apply.

When a CFC resident in an unlisted country provides, either directly or indirectly, an eligible benefit to an associated entity, section 47A may apply to deem that benefit a dividend.

Unless otherwise specified, the terms in this question have the same meaning as set out in section 47A of the ITAA 1936.

Broadly, a benefit is defined in section 47A to include the following:

  • a waiver or release of an obligation to pay or repay an amount (waiver of debts)
  • the granting of a non-arm's length loan
  • transfers of property or services for no or inadequate consideration
  • the payment of a call on an allotment of shares
  • share or unit acquisitions for non-arm's length consideration.

If you have a CFC that was resident in an unlisted country and provided a benefit within the meaning of section 47A of the ITAA 1936 either directly or indirectly to you or any of your related entities at any time during the income year, answer 'Yes' at label A of question 23.

Further Information

For more detailed information, refer to:

  • section 47A of the ITAA 1936
  • TR 2002/2Income tax: meaning of "Arm's Length" for the purpose of subsection 47A(7) of the Income Tax Assessment Act 1936 (ITAA 1936) dividend deeming provisions.
End of further information