Taxation Laws Amendment Act (No. 2) 1996 (76 of 1996)

Schedule 1   Amendment of the Income Tax Assessment Act 1936: various measures

Part 1   Offshore banking units

10   After subsection 121D(6)

Insert:

Investment activity-portfolio investment

(6A) For the purposes of paragraph (1)(e), an investment activity is also the managing by an OBU of a portfolio investment (see subsection 121DA(1)) for the whole or part (the investment management period) of a year of income, where:

(a) the portfolio investment is managed as broker or agent for, or trustee for the benefit of, a non-resident; and

(b) the portfolio investment was made by the OBU; and

(c) the portfolio investment was made with a non-resident (except to the extent that making the investment consisted of making a loan or purchasing an Australian thing); and

(d) the currency in which the portfolio investment was made was not Australian currency; and

(e) if the portfolio investment consists of only a single thing-the thing is not an Australian thing (see subsection 121DA(5)); and

(f) if paragraph (e) does not apply-the average Australian asset percentage (see subsection 121DA(2)) of the portfolio investment is not more than 10%.