Question 40 Foreign bank or other qualifying financial entity
Are you a foreign bank or other qualifying financial entity under Part IIIB of the ITAA 1936?
Question 40 must 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, under section 160ZZVB of the ITAA 1936, you:
- have not made an election that Part IIIB doesn't apply, then all the rules in Part IIIB apply
- have made an election that Part IIIB doesn't apply, then certain rules regarding withholding taxes in Part IIIB continue to apply.
For the purposes of Part IIIB, the following terms are defined in section 160ZZV:
- 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 question 40 – label A and complete:
- question 40a – labels B to F
- question 40b – labels G to J.
40a Notional amount of interest under Part IIIB
For question 40a, complete the following:
- At label B, write the amount of your average quarterly notional borrowings within the meaning of subsection 160ZZZ(1) of the ITAA 1936.
Calculated by adding up your notional borrowings determined under subsection 160ZZZ(1) at the end of each quarter in your income year and dividing that number by 4. - At label C, write the Appendix 13 currency in which the notional amount was taken to be borrowed under section 160ZZZ. If there is more than one currency, write the main currency of the notional borrowings.
- At label D, write 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 offshore banking (OB) activities under Division 9A of Part III of ITAA 1936.
- At label E, 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 F, write 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). 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.
40b Notional derivative and foreign exchange transactions
Notional derivative and foreign exchange transactions under Part IIIB
For question 40b, complete the following:
- At label G, write the notional amount taken to be paid under subsection 160ZZZE of the ITAA 1936.
- At label H, write the notional amount taken to be received under subsection 160ZZZE of the ITAA 1936.
- At label I, write the notional amount taken to be paid under subsection 160ZZZF of the ITAA 1936.
- At label J, write the notional amount taken to be received under subsection 160ZZZF of the ITAA 1936.
Don't show any amounts taken to be paid under section 160ZZZE or section 160ZZZF at question 18d – labels I and J.
40c Elected out of Part IIIB
Are you a foreign bank or other qualifying financial entity that has elected out of Part IIIB of the ITAA 1936?
Print X in the Yes box at question 40c – label K, if you are a foreign bank or other qualifying financial entity which has elected out of Part IIIB of the ITAA 1936.Complete question 40c – labels L to P.
- At label L, write the amount of your average quarterly notional borrowings within the meaning of subsection 160ZZZ(1) of the ITAA 1936.
Calculated by adding up your notional borrowings determined under subsection 160ZZZ(1) at the end of each quarter in your income year and dividing that number by 4. - At label M, write the Appendix 13 currency in which the notional amount was taken to be borrowed under section 160ZZZ. If there is more than one currency, write the main currency of the notional borrowings.
- At label N, write 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), don't include any amounts attributable to OB activities under Division 9A of Part III of ITAA 1936.
- At label O, 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 P, write 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).
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.
40d Amounts denied
Did you have amounts denied under section 160ZZZL of the ITAA 1936?
Print X in the Yes box at question 40d – label Q, if you have any deductions not allowable under subsection 160ZZZL(1) of the ITAA 1936, . Complete question 40d – label R.
At label R, write the amount not allowable as a deduction under subsection 160ZZZL(2) of the ITAA 1936. Where there is an adjustment under 160ZZZN of the ITAA 1936 the amount disclosed at label R is reduced by the amount deducted under subsection 160ZZZN(2) of the ITAA 1936.
Continue to: Section F: Miscellaneous
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