Tax Laws Amendment (2010 Measures No. 2) Act 2010 (75 of 2010)
Schedule 1 Distributions to entities connected with a private company
Income Tax Assessment Act 1936
11 At the end of Subdivision AA of Division 7A of Part III
109BB Application of Division to closely-held corporate limited partnerships
This Division applies to a corporate limited partnership in relation to a year of income in the same way as it applies to a private company in relation to a year of income, if, any time during the year of income:
(a) the partnership has fewer than 50 members; or
(b) any entity has, directly or indirectly, and for the entity's own benefit, an entitlement to a 75% or greater share of the income or capital of the partnership.
Example: Michael has an entitlement to an 80% share of the income of 2 fixed trusts. The 2 fixed trusts have, between them, an entitlement to 100% of the income of a corporate limited partnership. For the purposes of paragraph (b), Michael has, indirectly, and for his own benefit, an entitlement to a 75% or greater share of the income of the partnership.
109BC Application of Division to non-resident companies
(1) This Division applies, in relation to a payment, loan or debt forgiveness, in relation to a private company that is a non-resident as if:
(a) references in this Division to a year of income of the company were references to a tax accounting period in relation to the company in relation to a foreign tax imposed by a tax law of:
(i) if the company is a resident of only one foreign country - that foreign country; or
(ii) otherwise - the foreign country to which subsection (2) applies; and
(b) references in this Division to the lodgment day for the year of income were references to the due date for lodgment of the company's return of income for the tax accounting period under that tax law.
(2) For the purposes of subparagraph (1)(a)(ii), this subsection applies to a foreign country (the relevant country ) if:
(a) the company is a resident of the relevant country; and
(b) of all the tax accounting periods:
(i) in relation to the company in relation to the foreign taxes imposed by the tax laws of the foreign countries of which the company is resident; and
(ii) during which the payment, loan or debt forgiveness is made;
the tax accounting period under the tax law of the relevant country ends first; and
(c) if more than one of the tax accounting periods mentioned in paragraph (b) end first - the due date for lodgment of the company's return of income for the tax accounting period under the tax law of the relevant country is not later than the due date for lodgment for any of the other tax accounting periods that end first.
(3) In this section:
tax accounting period has the meaning given by section 317.
tax law has the meaning given by section 317.
Note: Section 109L prevents amounts from being included in assessable income under this Division if the amounts are included in, or excluded from, assessable income under another provision of this Act, such as the rules relating to CFCs and FIFs.