Tax Law Improvement Act (No. 1) 1998 (46 of 1998)
2 CGT (new Parts 3-1, 3-3 and 3-5)
3 Consequential amendment of the Income Tax Assessment Act 1936
465 Section 419
Repeal the section, substitute:
419 Modified application of Subdivision 126-B of the Income Tax Assessment Act 1997
(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, Subdivision 126-B of the Income Tax Assessment Act 1997 has effect as if the table in subsection 126-50(5) of that Act were omitted and the following table were substituted:
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Additional requirements |
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The originating CFC's residency status |
The recipient company's residency status |
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1 |
A resident of a broad-exemption listed country at the time of the trigger event |
Either: (a) a resident of that broad-exemption listed country at that time; or (b) an Australian resident at that time |
It does not matter what the roll-over asset is |
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2 |
A resident of a broad-exemption listed country at the time of the trigger event |
A resident of a particular non-broad-exemption listed country at that time |
The asset must have been used (just before that time) in connection with a permanent establishment of the originating CFC in any non-broad-exemption listed country at or through which the originating CFC carried on business just before that time |
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3 |
A resident of a non-broad-exemption listed country at the time of the trigger event |
Either: (a) a resident of a non-broad-exemption listed country at that time; or (b) an Australian resident at that time |
It does not matter what the roll-over asset is |
(2) The residency assumption is ignored for the purpose of applying the table in subsection (1).
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