Taxation Determination

TD 2017/22A1 - Addendum

Income tax: where an Australian corporate tax entity is a beneficiary of a trust, can the trust 'hold' a direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936) in a foreign company for the purpose of Subdivision 768-A of the Income Tax Assessment Act 1997?

Addendum

This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Taxation Determination TD 2017/22 to clarify its date of effect.

TD 2017/22 is amended as follows:

1.Paragraph 47

Omit the second sentence; substitute 'However, to the extent that this Determination provides a less favourable outcome than the view outlined in Taxation Determination TD 2016/D7 Income tax: where an Australian corporate tax entity is a beneficiary of a trust, can the trust be taken to 'hold' a direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936) in a foreign company for the purpose of Subdivision 768-A of the Income Tax Assessment Act 1997?, taxpayers will be entitled to rely on the view in TD 2016/D7 for foreign equity distributions made up until the date of issue of this Determination.'.

This Addendum applies on and from 18 October 2017.

Commissioner of Taxation
1 November 2017

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References

ATO references:
NO 1-9M7IA94

ISSN: 2205-6211

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