Income Tax Assessment Act 1936


Division 9A - Offshore banking units  

Subdivision A - Object and simplified outline  


121B(1)   Scope of section.  

The following is a simplified outline of the Division.

121B(2)   Main concepts.  

Subdivision B sets out the concepts used in the Division, the most important being:


OB activity (sections 121D , 121EA and 121EAA ) together with the related definition of offshore person (section 121E ); and


special income and allowable deduction definitions relating to OB activities (sections 121EDA to 121EF ).

121B(3)   Operative provisions.  

Subdivision C contains the operative provisions. Basically, they provide as follows:

(a) (Repealed by No 110 of 2021)

(b) (Repealed by No 110 of 2021)

(c) (Repealed by No 143 of 2007 )


income from OB activities is taken to be Australian sourced;

(e)  a deemed interest penalty applies to equity provided by an OBU's resident owner;

(f)  income of OBU offshore investment trusts is exempt from tax;


income derived by overseas charitable institutions from OBUs is exempt from tax;


certain adjustments are made to the capital gains and losses that flow from disposals of certain interests in trusts of which an OBU is the trustee.

View surrounding sectionsView surrounding sectionsBack to top

This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.