INCOME TAX ASSESSMENT ACT 1936

PART X - ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES  

Division 8 - Active income test  

Subdivision F - Special rules relating to AFI subsidiaries carrying on financial intermediary business  

SECTION 449   AFI SUBSIDIARIES - INTEREST INCOME  

449(1)   [Tainted interest income]  

The passive income of a company of a statutory accounting period does not include tainted interest income where, at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business.

449(2)   [Interest from loan made to Commonwealth]  

The tainted services income of a company of a statutory accounting period does not include income where the following conditions are satisfied:


(a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;


(b) the income consisted of interest, or a payment in the nature of interest, derived by the company from a loan made in the course of carrying on that business;


(c) the loan was made to the Commonwealth.

449(3)   [Interest from deposit with central bank]  

The passive income, or the tainted services income, of a company of a statutory accounting period does not include income where the following conditions are satisfied:


(a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;


(b) the income consisted of interest, or a payment in the nature of interest, derived by the company from a deposit with a central bank.

449(4)   [Time income was derived]  

In the application of subsection 448(1) to income derived by a company, where the following conditions are satisfied:


(a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;


(b) the income consisted of interest, or a payment in the nature of interest, derived by the company from a loan made in the course of carrying on that business;

a reference in that subsection to the time the income was derived is to be read as a reference to the time the loan was made.


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