Income Tax Assessment Act 1936


Division 9A - Offshore banking units  

Subdivision B - Interpretation  


OB income

Subject to subsections (2) to (5), the OB income of an OBU of a year of income is so much of the OBU ' s ordinary income and statutory income of the year of income as is:

(a) derived from OB activities of the OBU or the part of the OBU to which paragraph 121EB(1)(c) applies; or

(b) included in the statutory income because of such activities.

Subsection (1) does not apply to amounts included under Part 3-1 of the Income Tax Assessment Act 1997 (about capital gains).

Subsection (1) does not apply to the extent that the money lent, invested or otherwise used in carrying on the OB activities is non-OB money of the OBU.

A typical example of an amount covered by the exception in subsection (3) is interest derived from the OB activity of lending money to an offshore person, where the money lent is non-OB money. Reduction of OB income because of certain investment activities

Ordinary or statutory income that:

(a) would otherwise be taken into account under subsection (1); and

(b) is derived from an investment activity (within the meaning of subsection 121D(6A) or (6B) ) included in OB activities of the OBU or the part of the OBU to which paragraph 121EB(1)(c) applies;

is reduced by the average Australian asset percentage (within the meaning of subsection 121DA(2) ) of the portfolio investment concerned.


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.