Income Tax Assessment Act 1936
It is the intention that, in so far as this Part is to be applied to identify amounts of income and expenditure that are taken into account in calculating that part of a foreign bank ' s taxable income of a year of income that is referable to certain activities of its Australian branch, the provisions of this Part are to be applied in their entirety. 160ZZVB(2)
If, as a result of the application of this Part:
(a) the taxable income of a year of income of a foreign bank that is attributable to activities carried on by the bank through its Australian branch is greater than the amount that would be that taxable income if this Part did not apply; or
(b) a foreign bank would be taken not to incur a loss in a year of income in respect of activities carried on by the bank through its Australian branch that it would be taken to have incurred if this Part did not apply; or
(c) the amount of a loss that a foreign bank would be taken to incur in a year of income in respect of activities carried on by the bank through its Australian branch is less than the amount of the loss that it would be taken to have incurred if this Part did not apply;
the bank may elect that this Part is not to apply in the calculation of its taxable income of that year of income.
If a foreign bank makes an election as mentioned in subsection (2):
(a) this Part does not apply in the calculation of the bank ' s taxable income of the year of income to which the election relates and the bank may furnish returns, and is liable to pay tax, accordingly; but
(b) the election does not affect the operation of this Part in respect of the application of withholding tax to amounts that are taken by this Part to be interest paid by the branch to the bank.
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