INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 9A - Offshore banking units  

Subdivision B - Interpretation  

SECTION 121C   121C   INTERPRETATION  


In this Division:

adjusted assessable OB income
has the meaning given by subsection 121EE(4) .

adjusted total assessable income
has the meaning given by subsection 121EE(5) .

allowable OB deduction
has the meaning given by subsection 121EF(2) .

apportionable OB deduction
has the meaning given by subsection 121EF(5) .

assessable OB income
has the meaning given by subsection 121EE(2) .

associate
has the meaning given by section 318 .

Australian thing
has the meaning given by subsection 121DA(5) .

average Australian asset percentage
has the meaning given by subsection 121DA(2) .

borrow
includes raise finance by the issue of a security.

eligible contract
means:


(a) any of the following:


(i) a futures contract;

(ii) a forward contract;

(iii) an options contract;

(iv) a swap contract;

(v) a cap, collar, floor or similar contract; or


(b) a loan contract; or


(c) a securities lending or repurchase arrangement; or


(d) a non-deliverable forward foreign currency contract.

exclusive non-OB deduction
has the meaning given by subsection 121EF(6) .

exclusive OB deduction
has the meaning given by subsection 121EF(3) .

general OB deduction
has the meaning given by subsection 121EF(4) .

lend
includes provide finance by the purchase of a security.

loss deduction
has the meaning given by subsection 121EF(7) .

monthly Australian asset percentage
has the meaning given by subsection 121DA(3) .

non-OB accounting records
has the meaning given by subsection 121EAA(3) .

non-OB money
, in relation to an OBU, means money of the OBU other than:


(a) money received by the OBU in carrying on an OB activity; or


(b) OBU resident-owner money of the OBU; or


(c) money paid to the OBU by a non-resident (other than in carrying on business in Australia at or through a permanent establishment of the non-resident) by way of subscription for, or a call on, shares in the OBU;

(an example of non-OB money being money borrowed from a resident whose lending of the money does not occur in carrying on business in a country outside Australia at or through a permanent establishment of the resident).

non-resident trust
means a unit trust that is not a resident unit trust within the meaning of section 102Q .

OB activity
has the meaning given by section 121D .

OB advisory activity
has the meaning given by section 121DC .

OB eligible contract activity
has the meaning given by section 121DB .

OB income
has the meaning given by section 121EDA .

OB leasing activity
has the meaning given by section 121DD .

OBU
(offshore banking unit) means an offshore banking unit within the meaning of Division 11A of Part III .

Note:

In this Division, the head company of a consolidated group or MEC group may be treated for certain purposes as an OBU at a time when a subsidiary member of the group is an OBU (see Subdivision 717-O of the Income Tax Assessment Act 1997 ).

OBU resident-owner money
has the meaning given by section 121EC .

offshore person
has the meaning given by section 121E .

offshore property
means property that:


(a) cannot be in Australia; or

Example:

Land outside Australia.


(b) is used, or will be used:


(i) wholly outside Australia; or

(ii) in Australia to an extent that is not material.

overseas charitable institution
means a non-resident institution the income of which:


(a) would be exempt from tax under item 1.1 of section 50-5 of the Income Tax Assessment Act 1997 (and not under any other item of that section) if the institution had a physical presence in Australia and incurred its expenditure and pursued its objectives principally in Australia; and


(b) is exempt in the country in which it is resident.

owner
, in relation to a company, means a person who, alone or together with an associate or associates, is the beneficial owner of all of the shares in the company.

portfolio investment
has the meaning given by subsection 121DA(1) .

related person
, in relation to an OBU, means:


(a) an associate of the OBU; or


(b) a permanent establishment referred to in paragraph 121EB(1)(b) in relation to the OBU.

security
means a bond, debenture, debt interest, bill of exchange, promissory note or other security or similar instrument.

trade with a person
has the meaning given by section 121ED .

90-day bank bill rate
, at a particular time, means:


(a) if the Reserve Bank of Australia has published a rate described as the 90-day bank accepted bill rate in respect of a period in which the particular time occurs - that rate; or


(b) in any other case - the rate declared by regulations for the purposes of this definition to be the 90-day bank accepted bill rate in respect of a period in which the particular time occurs.


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