Section 160ZZZN — Income Tax Assessment Act 1936: Adjusting if Australian branch derives dual inclusion income in a later year

(1) There is an adjustment under subsection (2) for the Australian branch in a year of income (the adjustment year) if: (a) an amount of a deduction was not allowable for the branch in an earlier year of income under subsection 160ZZZL(2); and (b) this Part applies in the calculation of the foreign bank’s taxable income in the adjustment year; and (c) an amount of income or profits of the Australian branch is: (i) subject to Australian income tax for the purposes of subsection 832-680(1) of the Income Tax Assessment Act 1997 in the adjustment year; and (ii) subject to foreign income tax for the purposes of that subsection in the foreign country in which the foreign bank is a resident. (2) So much of the amount of income or profits that satisfies paragraph (1)(c) as does not exceed the amount of the deduction that was not allowable is an amount the Australian branch can deduct in the adjustment year. (3) For the purposes of a later application of this section, treat the amount of the deduction that was not allowable under subsection 160ZZZL(2) as being reduced by the amount deducted under subsection (2).