Tax Laws Amendment (Foreign Source Income Deferral) Act (No. 1) 2010 (114 of 2010)

Schedule 1   Repeal of the FIF and deemed present entitlement rules

Part 1   Main amendments

Income Tax Assessment Act 1997

68   Subsection 770-135(2)

Repeal the subsection, substitute:

(2) An amount is included in an entity's assessable income as described in this subsection if the entity is a company and the amount is included under:

(a) section 456 (a section 456 case ) of the 1936 Act in relation to a *CFC and a statutory accounting period; or

(b) section 457 (a section 457 case ) of that Act in relation to a CFC.

Note: Section 456 of the 1936 Act includes, in the assessable income of certain Australian shareholders, amounts that are attributable to the profits of an Australian-controlled foreign company.

Section 457 does likewise when a controlled foreign company changes residence from an unlisted to a listed country or to Australia.