INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 (ARCHIVE)

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 830 - Application of the foreign hybrid rules  

SECTION 830-10 (ARCHIVE)   Election to extend standard application for CFCs with direct or indirect interests in foreign hybrid  

830-10(1)    
If:

(a) an entity is an attributable taxpayer in relation to a CFC at the end of the statutory accounting period that starts on 1 July 2002 or on the day on which, as a result of an election under subsection 319(2) of the Income Tax Assessment Act 1936 , the statutory accounting period that would otherwise start on 1 July 2002 starts; and

(b) either:

(i) if the attributable taxpayer makes an election under this subsection, the CFC will, as a result, be a partner in an entity that is a foreign hybrid in relation to that statutory accounting period; or

(ii) the CFC has, directly or indirectly through one or more other entities, an interest in another entity that, if the attributable taxpayer makes an election under this subsection, will, as a result, be a foreign hybrid in relation to that statutory accounting period;

the attributable taxpayer may elect that Division 830 of the Income Tax Assessment Act 1997 applies for the purpose of working out the attributable income of the CFC for the statutory accounting period.

830-10(2)    
If:

(a) for the purpose of working out the attributable income of a CFC in relation to an attributable taxpayer, a CFC:

(i) is, as a result of subsection 830-1(2) of this Act, a partner in an entity that is a foreign hybrid in relation to the statutory accounting period mentioned in paragraph (a) of that subsection; or

(ii) has, directly or indirectly through one or more other entities, an interest in another entity that is, as a result of subsection 830-1(2) of this Act, a foreign hybrid in relation to that statutory accounting period; and

(b) the entity mentioned in subparagraph (a)(i) or (ii) is also a foreign hybrid in relation to that statutory accounting period in a case where the requirements in subsection 830-15(3) of the Income Tax Assessment Act 1997 are satisfied;

the attributable taxpayer may elect that Division 830 of the Income Tax Assessment Act 1997 applies for the purpose of working out the attributable income of the CFC, in relation to the attributable taxpayer, for the preceding statutory accounting period.

830-10(3)    
An attributable taxpayer must make an election under this section:

(a) on or before the day on which it lodges its income tax return for the 2003-2004 income year; or

(b) within a further time allowed by the Commissioner.

830-10(4)    
The election is irrevocable.