Tax Laws Amendment (Foreign Source Income Deferral) Act (No. 1) 2010 (114 of 2010)
Schedule 1 Repeal of the FIF and deemed present entitlement rules
Part 1 Main amendments
Income Tax Assessment Act 1997
78 Subsection 830-15(5)
Repeal the subsection, substitute:
(5) If a shareholder is not an *attributable taxpayer in relation to a company, then, for the purposes of applying the Income Tax Assessment Act 1936 and this Act in relation to the shareholder's *share or shares in the company, the company is a foreign hybrid company in relation to an income year for the shareholder if, and only if, the shareholder:
(a) has made an election under former subsection 485AA(1) of the Income Tax Assessment Act 1936; or
(b) makes an election under this paragraph;
in relation to the shareholder's share or shares in the company.
(6) For the purposes of subsection (5), the company is a foreign hybrid company in relation to any income year during which the election referred to in paragraph (5)(a) or (5)(b) is in force.
(7) An election can only be made under paragraph (5)(b) if:
(a) in relation to the income year in which the election is made, the company:
(i) is a FIF (within the meaning of former Part XI of the Income Tax Assessment Act 1936); and
(ii) satisfies paragraphs (1)(a) to (c); and
(b) at the end of the income year in which the election is made, the shareholder's interest in the FIF consists of one or more *shares in the FIF.
(8) An election under paragraph (5)(b) must be made:
(a) on or before the day on which the shareholder lodges the shareholder's income tax return for the income year; or
(b) within a further time allowed by the Commissioner.
(9) The election:
(a) is in force during the income year and all later income years; and
(b) is irrevocable.