• Meaning of tainted sales income

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    The tainted sales income of a CFC includes that part of gross turnover that represents sales income where the goods sold were purchased from or sold to:

    • an associate who is a Part X Australian resident, or
    • an associate who is not a Part X Australian resident but carried on business in Australia through a permanent establishment.

    Sales which result in tainted sales income

     

    Purchased from

    Tainted sales?

    Sold to anyone

    Associated Australian

    Yes

    Associated non-resident (via Australian branch)

    Yes

    Unassociated Australian

    No

    Associated non-resident (not via Australian branch)

    No

    Unassociated non-resident

    No

    Purchases which result in tainted sales income on sale

     

    Sold to

    Tainted sales?

    Purchased from anyone

    Associated Australian

    Yes

    Associated non-resident (via Australian branch)

    Yes

    Unassociated Australian

    No

    Associated non-resident (not via Australian branch)

    No

    Unassociated non-resident

    No

    Last modified: 05 Dec 2006QC 18000