New International Tax Arrangements (Foreign-owned Branches and Other Measures) Act 2005 (64 of 2005)

Schedule 2   Amendments relating to CFCs

Income Tax Assessment Act 1936

5   Subsection 406(1)

Repeal the subsection, substitute:

(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, the eligible CFC's commencing day is the later of:

(a) the last day of the most recent period during which there was not an attributable taxpayer with an attribution percentage (greater than nil) in relation to the eligible CFC; and

(b) 30 June 1990.

Example: If a taxpayer became an attributable taxpayer with an attribution percentage (greater than nil) in relation to the eligible CFC at 3 pm on 20 October 2004 and there were no other such attributable taxpayers at that time, the commencing day is 20 October 2004.