New International Tax Arrangements (Participation Exemption and Other Measures) Act 2004 (96 of 2004)

Schedule 2   Foreign branch income, non-portfolio dividends and listed countries

Part 5   Listed countries: consequential amendments

Income Tax Assessment Act 1936

114   Section 317 (paragraphs (c) and (d) of the definition of tainted rental income )

Repeal the paragraphs, substitute:

(c) a lease of land, except where the following conditions are satisfied:

(i) the land is situated in a listed country or in an unlisted country;

(ii) at all times during the period when the income accrued, the company was a resident of that country;

(d) a lease of land where the following conditions are satisfied:

(i) the land is situated in a listed country or in an unlisted country;

(ii) at all times during the period when the income accrued, the company was a resident of that country;

(iii) it is not the case that a substantial part of the income is attributable to the provision of labour-intensive property management services in connection with the land, being services provided by directors or employees of the company;