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Draft Taxation Determination

TD 93/D201

Income tax: Offshore Banking Units (OBU) - if an OBU carries on a business of trading in shares or debt instruments, such that the trading is an offshore banking (OB) activity for the purposes of subsection 121D(1), are dividends and interest derived from holding the shares or debt instruments assessable OB income?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 93/206.

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. Subsection 121EE(2) of the Income Tax Assessment Act 1936 defines the assessable OB income of an OBU as so much of the OBU's assessable income as is derived from OB activities, or included in assessable income because of such activities.

2. Dividends and interest accruing from instruments held in an OBU's trading portfolio clearly fall under the second limb of subsection 121EE(2) and, therefore, qualify as assessable OB income.

Commissioner of Taxation
19/8/93

References


BO 93/3707-5

ISSN 1038 - 8982

Subject References:
Offshore banking
OBUs
assessable OB income

Legislative References:
ITAA 121D(1)
ITAA 121EE(2)


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