Income Tax Assessment Act 1997
CHAPTER 4
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INTERNATIONAL ASPECTS OF INCOME TAX
PART 4-5
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GENERAL
Division 830
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Foreign hybrids
Subdivision 830-C
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Special rules applicable while an entity is a foreign hybrid
SECTION 830-60
Meaning of
loss exposure amount
830-60(1)
The loss exposure amount of a partner in a *foreign hybrid for an income year is worked out as follows: Method statement
Step 1.(a) have not been repaid or returned to the partner; and
(b) have been contributed for at least 180 days, or are intended by the partner to remain contributed for at least 180 days.
Step 2.(a) all *limited recourse debts owed by the partner at the end of the income year, to the extent that the *borrowings concerned were for the purpose of enabling the partner to make contributions to the *foreign hybrid and the debts were secured by the partner's interest in the foreign hybrid; and
(b) all the partner's *foreign hybrid revenue loss amounts in respect of the foreign hybrid for previous income years, after any reduction under subsection
830-45(2)
; and
(c) all the partner's *foreign hybrid net capital loss amounts in relation to the partnership for previous income years, after any reduction under subsection
830-45(2)
; and
(d) all deductions allowed to the partner under subsection
830-50(2)
or (3) in respect of the foreign hybrid for previous income years; and
(e) all *capital losses that, as a result of subsection
830-50(2)
or (3), the partner made in respect of *CGT event K12 in respect of the foreign hybrid for previous income years.
Contribution in case of foreign hybrid company
830-60(2)
For the purposes of step 1 in the method statement in subsection (1), if:
(a) the *foreign hybrid is a *foreign hybrid company; and
(b) the partner *acquired its *shares in the company from another shareholder; and
(c) the payment or other consideration for the acquisition of the shares did not constitute the making of a contribution by the partner to the foreign hybrid;
(d) to be a contribution by the partner to the foreign hybrid; and
(e) to be so contributed for as long as the partner holds the shares; and
(f) to have been repaid to the partner to the extent of any payment that:
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In the case of a foreign hybrid company, references in this Subdivision that relate to partnerships are to be read subject to Subdivision 830-B . For example, a reference to a partner will be a reference to a shareholder in the company who is treated by Subdivision 830-B as a partner.
The loss exposure amount of a partner in a *foreign hybrid for an income year is worked out as follows: Method statement
Step 1.
Work out the sum of the amounts or *market values of the contributions made by the partner to the *foreign hybrid that, as at the end of the income year:
Step 2.
Subtract the sum of the amounts of:
Contribution in case of foreign hybrid company
830-60(2)
For the purposes of step 1 in the method statement in subsection (1), if:
(a) the *foreign hybrid is a *foreign hybrid company; and
(b) the partner *acquired its *shares in the company from another shareholder; and
(c) the payment or other consideration for the acquisition of the shares did not constitute the making of a contribution by the partner to the foreign hybrid;
the payment or other consideration is taken:
(d) to be a contribution by the partner to the foreign hybrid; and
(e) to be so contributed for as long as the partner holds the shares; and
(f) to have been repaid to the partner to the extent of any payment that:
(i) the foreign hybrid makes to the partner in respect of the share; and
(ii) the foreign hybrid describes as a return of capital; and
(iii) is attributable to the period during which the partner has held the shares.
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