Income Tax Assessment Act 1936


Division 9A - Offshore banking units  

Subdivision B - Interpretation  


An OBU may, when it does a thing that would otherwise be an OB activity of the OBU, choose to have the thing not be an OB activity . Accounting records

The OBU recording the thing in the OBU ' s non-OB accounting records is sufficient evidence of the making of the choice, if the OBU uses money in the thing.

Note 1:

The OBU must maintain accounting records, separate from its non-OB accounting records, in respect of money used in its OB activities: see subsection 262A(1A) .

Note 2:

Subsection (2) of this section and subsection 262A(1A) do not apply if the OBU does not use money in the thing, but the OBU must keep documents containing particulars of the choice: see paragraph 262A(2)(b) .

Note 3:

Subsection (2) does not prevent the OBU from correcting a mistake in its accounting records.

The OBU ' s non-OB accounting records are the OBU ' s accounting records, other than the accounting records maintained in respect of money used in the OBU ' s OB activities under subsection 262A(1A) . Grouping

The OBU is treated as having chosen under subsection (1) to have a thing (the transaction ) done by the OBU not be an OB activity if:

(a)  it is reasonable to regard the transaction and one or more other things done by the OBU as constituting a single scheme (within the meaning of the Income Tax Assessment Act 1997 ); and

(b)  the OBU chooses under subsection (1) to have any of those other things done by the OBU not be an OB activity.

For the purposes of subsection (4) , whether the transaction and one or more other things constitute a single scheme is a question of fact and degree determined having regard to the following (whichever are applicable):

(a)  the nature of the transaction and the other things;

(b)  their terms and conditions (including those relating to any payment or other consideration for them);

(c)  the circumstances surrounding their creation and their proposed exercise or performance (including what can reasonably be seen as the purposes of one or more of the entities involved);

(d)  whether they can be dealt with separately or must be dealt with together;


normal commercial understandings and practices in relation to them (including whether they are regarded commercially as separate things or as a group or series that forms a whole).

(f) (Repealed by No 110 of 2021)


In applying subsection (5) , have regard to the matters mentioned in paragraphs (5)(a) to (e) both:

(a)  in relation to the transaction and other things separately; and

(b)  in relation to the transaction and other things in combination with each other.


Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.