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Draft Taxation Determination

TD 93/D122

Income tax: foreign income (foreign investment funds) - does the phrase 'assets for use in eligible activities' in section 500 of the Income Tax Assessment Act 1936 (ITAA) include assets held for use in eligible activities?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 93/137.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. Yes. The phrase "assets for use in eligible activitites" in section 500 of the ITAA includes assets held for use in eligible activities.

2. Accordingly, assets held for use in eligible activities will be taken into account for the purposes of the balance sheet method of determining whether a taxpayer's interest in a foreign company qualifies for the active business exemption under the foreign investment fund measures.

3. An example of an asset held for use in an eligible activity is newly installed plant ready for use in manufacturing.

Commissioner of Taxation
20 May 1993

References


BO N.O. 16.93/1775-9

ISSN 1038-8982

Subject References:
Foreign Investment Funds

Legislative References:
ITAA 500


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