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Question 40

Last updated 7 August 2014

This question needs to be completed by qualifying foreign banks and financial entities to which Part IIIB of the ITAA 1936 applies (and have not elected out of Part IIIB).

The dollar amounts or values asked for in this question are all based on your tax records.

If you are a foreign bank or a qualifying foreign financial entity that carries on business operations through an Australian branch, and you have not elected to opt out of Part IIIB of the ITAA 1936, then the rules in Part IIIB of the ITAA 1936 apply.

For the purposes of Part IIIB of the ITAA 1936 the following terms are defined in section 160ZZV of the ITAA 1936:

  • 'Australian branch' in relation to a foreign bank, means a permanent establishment in Australia through which the bank carries on banking business
  • 'foreign bank' means a body corporate that is a foreign authorised deposit taking institution (ADI) for the purposes of the Banking Act 1959
  • 'financial entity' and 'foreign entity' both have the meaning given in section 995-1 of the ITAA 1997.

If you are a foreign bank or other qualifying financial entity which has not elected out of Part IIIB of the ITAA 1936, answer 'Yes' at label A of question 40 and complete the following labels.

At label B, write the amount of your average quarterly notional borrowings within the meaning of subsection 160ZZZ(1) of the ITAA 1936. This is calculated by adding up your notional borrowings determined under subsection 160ZZZ(1) at the end of each quarter in your financial year and dividing it by four.

At label C, write the amount of the amount of interest taken to be paid under section 160ZZZA of the ITAA 1936 (capped at LIBOR). If you are an offshore banking unit (OBU), do not include any amounts attributable to OB activities under Division 9A of Part III of ITAA 1936.

At label D, write the amount of interest taken to be paid under section 160ZZZA of the ITAA 1936 attributable to OB activities under Division 9A of Part III of ITAA 1936 (if you are an OBU).

At label E, include the amount of withholding tax you paid on the interest amount taken to be paid under section 160ZZZA of the ITAA 1936 (capped at LIBOR).

Attention

Interest withholding tax is payable under section 160ZZZJ of the ITAA 1936 on 50% of the amount of interest taken to be paid under section 160ZZZA .

End of attention

QC26054