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  • Worksheet 4: Working out the attributable income of a CFC

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    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

    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


    $               
    Last modified: 26 May 2016QC 48087