Income Tax Assessment Act 1936

PART IIIB - AUSTRALIAN BRANCHES OF FOREIGN BANKS  

Division 1 - Preliminary  

SECTION 160ZZW   CERTAIN PROVISIONS TO APPLY AS IF AUSTRALIAN BRANCH OF FOREIGN BANK WERE A SEPARATE LEGAL ENTITY  

160ZZW(1)   [Application of certain provisions]  

Subsections (2), (3), (4) and (5) apply only:

(a) for the purposes of sections 160ZZZ , 160ZZZA , 160ZZZC , 160ZZZE and 160ZZZF as they have effect in the determination under this Act of the liability of a foreign bank to tax (other than withholding tax) in respect of income derived from an Australian branch of the bank; and

(b) for the purposes of the provisions of this Act other than this Part as those provisions apply in relation to amounts that are taken by this Part to have been received from a foreign bank by its Australian branch or to have been paid to a foreign bank by its Australian branch; and

(c) for the purposes of section 160ZZZJ as it has effect in determining the liability of a foreign bank to withholding tax in respect of amounts paid to the bank by an Australian branch of the bank.

160ZZW(1A)   [ Financial arrangements]  

To avoid doubt, subsection (2) applies for the purposes of applying Subdivision 230-A of the Income Tax Assessment Act 1997 to a financial arrangement (within the meaning of that Act).

Note:

This means that it is possible for financial arrangements to be entered into between the bank and the branch and for the bank or the branch to have a gain or loss from such an arrangement dealt with under Division 230 of the Income Tax Assessment Act 1997 .

160ZZW(2)   [Branch and bank deemed separate legal entities]  

The branch and the bank are taken to be, and to have been since the time of establishment of the branch, separate legal entities.

Note:

For cross-border transfer pricing, the rules in Subdivision 815-B of the Income Tax Assessment Act 1997 apply to the separate legal entity, rather than the rules for permanent establishments in Subdivision 815-C : see subsection 815-210(3) of that Act.

160ZZW(3)   [Branch deemed wholly-owned subsidiary of bank]  

The branch is taken to be, and to have been since the time of its establishment, a company having a share capital all the shares in which are or were beneficially owned by the bank.

160ZZW(4)   [Branch deemed non-resident]  

The branch is taken to be a non-resident and to have been a non-resident since the time of its establishment.

160ZZW(5)    
(Repealed by No 101 of 2013)