INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 7A - Distributions to entities connected with a private company  

Subdivision AA - Application of Division  

SECTION 109BC   APPLICATION OF DIVISION TO NON-RESIDENT COMPANIES  

109BC(1)   [ Private company]  

This Division applies, in relation to a payment, loan or debt forgiveness, in relation to a private company that is a non-resident as if:


(a) references in this Division to a year of income of the company were references to a tax accounting period in relation to the company in relation to a foreign tax imposed by a tax law of:


(i) if the company is a resident of only one foreign country - that foreign country; or

(ii) otherwise - the foreign country to which subsection (2) applies; and


(b) references in this Division to the lodgment day for the year of income were references to the due date for lodgment of the company's return of income for the tax accounting period under that tax law.

109BC(2)   [ Foreign country]  

For the purposes of subparagraph (1)(a)(ii), this subsection applies to a foreign country (the relevant country ) if:


(a) the company is a resident of the relevant country; and


(b) of all the tax accounting periods:


(i) in relation to the company in relation to the foreign taxes imposed by the tax laws of the foreign countries of which the company is resident; and

(ii) during which the payment, loan or debt forgiveness is made;
the tax accounting period under the tax law of the relevant country ends first; and


(c) if more than one of the tax accounting periods mentioned in paragraph (b) end first - the due date for lodgment of the company's return of income for the tax accounting period under the tax law of the relevant country is not later than the due date for lodgment for any of the other tax accounting periods that end first.

109BC(3)   [ Interpretation]  

In this section:

tax accounting period
has the meaning given by section 317 .

tax law
has the meaning given by section 317 .

Note:

Section 109L prevents amounts from being included in assessable income under this Division if the amounts are included in, or excluded from, assessable income under another provision of this Act, such as the rules relating to CFCs and FIFs.


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