Taxation Determination
TD 93/137
Income tax: foreign income (foreign investment funds) - does the phrase 'assets for use in eligible activities' in section 500 of the Income Tax Assessment Act 1936 (ITAA) include assets held for use in eligible activities?
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FOI status:
may be releasedFOI number: I 1215587| This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20). |
1. Yes, the phrase 'assets for use in eligible activitites' in section 500 of the ITAA includes assets held for use in eligible activities.
2. Accordingly, assets held for use in eligible activities will be taken into account for the purposes of the balance sheet method of determining whether a taxpayer's interest in a foreign company qualifies for the active business exemption under the foreign investment fund measures.
3. An example of an asset held for use in an eligible activity is newly installed plant ready for use in manufacturing.
Commissioner of Taxation
8/7/93
Previously issued as Draft TD 93/D122
References
ATO references:
NO N.O. 16.93/1775-9
Subject References:
Foreign Investment Funds
Legislative References:
ITAA 500
| Date: | Version: | Change: | |
| You are here | 8 July 1993 | Original ruling | |
| 3 April 2013 | Withdrawn |