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Legal database

Draft Taxation Determination

TD 93/D34

Income tax: Offshore Banking Units - can a sub-subsidiary of a bank be registered as an OBU?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 93/134.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. Yes, but only where the subsidiary and sub-subsidiary are wholly owned by a bank which is registered as an offsore banking unit (OBU).

2. Section 128AE of the Income Tax Assessment Act 1936 lists the entities which may be registered as OBUs:

•
savings and trading banks
•
State banks
•
financial institutions authorised to deal in foreign exchange
•
wholly owned subsidiaries of banks registered as OBUs

3. It is not necessary for the interposed entity to be a bank or an OBU so long as all of the shares are ultimately beneficially owned by a bank registered as an OBU.

Commissioner of Taxation
18 February 1993

References


BO 92/9494-5

ISSN 1038 - 8982

Subject References:
Offshore Banking Units

Legislative References:
ITAA 128AE


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