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Taxation Determination

TD 93/209

Income tax: Offshore Banking Units (OBU) - does the definition of advisory activity in subsection 121D(7) encompass: • advising offshore parties on offshore infrastructure financing; and • advising lessors or lessees on leasing transactions, where both lessor and lessee are offshore persons and the leased asset is not located in Australia?

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FOI status:

may be releasedFOI number: I 1216437

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 definition of advisory activity in subsection 121D(7) of the Income Tax Assessment Act 1936 has been drafted widely, and the supplementary explanatory memorandum to Taxation Laws Amendment Bill (No.4) makes it clear that the definition is intended to apply to fee income in relation to financial advice generally, provided there is no connection with Australia.

2. Rendering advice on leasing transactions or infrastructure financing to an offshore person, where all of the parties to the transaction are offshore persons, and none of the property that is subject to the transaction is located in Australia, quite clearly falls within the definition.

Commissioner of Taxation
28/10/93

Previously issued as Draft TD 93/D204

References

ATO references:
NO NAT 93/3707-5

ISSN 1038 - 8982

Subject References:
Offshore banking;
OBUs;
advisory activity

Legislative References:
ITAA 121D(7)

Other References:
Supplementary Explanatory Memorandum: Taxation Laws Amendment Bill (No.4) 1992

TD 93/209 history
  Date: Version: Change:
You are here 28 October 1993 Original ruling  
  13 October 2021 Consolidated ruling Addendum

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