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You can get an exemption for your interest in a foreign bank if the following requirements are satisfied:
You must hold shares in the bank of a class listed on a stock exchange approved in regulation 152I, Schedule 12 of the Income Tax Regulations 1936 (the Regulations). See Appendix 1: Approved stock exchanges for more information. Unlisted shares issued by some banks as a substitute for deposits with the bank would not satisfy this criterion.
The class of shares you hold in the bank must be widely held and actively traded on a regular basis on a stock market of an approved stock exchange during the period for which you are seeking the exemption.
- Authorised to carry on banking business
The bank must be authorised under the law of its place of residence to carry on banking business.
- Principally engaged in the banking business
The bank must be principally engaged in the active carrying on of banking business. [section 503]
Last modified: 04 Feb 2010QC 21777