Income Tax Assessment Act 1936

Sections and provisions with full text and the judgments that cite each one.

Section 367 — Direct attribution account interest in a partnership

(1) An entity that is a partner in a partnership holds a direct attribution account interest in the partnership at a particular time equal to the percentage that the partner holds, or is entitled to…

Section 368 — Direct attribution account interest in a trust

(1) A beneficiary in a trust holds a direct attribution account interest in the trust at a particular time equal to: (a) the percentage of the income of the trust represented by the share of the…

Section 369 — Indirect attribution account interest in an entity

(1) The indirect attribution account interest that an entity (in this section called the bottom entity) holds in another entity (in this section called the top entity) is calculated in accordance…

Section 370 — Attribution surplus

An attribution surplus for an attribution account entity in relation to a taxpayer exists at a particular time if the entity’s total attribution credits arising before that time in relation to the…

Section 371 — Attribution credit

(1) An attribution credit arises for an attribution account entity (in this section called the eligible entity) in relation to a taxpayer if: (a) an amount is included in the taxpayer’s assessable…

Section 372 — Attribution debit

(1) An attribution debit arises for an attribution account entity (in this section called the eligible entity) in relation to a taxpayer if: (a) the eligible entity makes an attribution account…

Section 373 — Grossed-up amount of an attribution debit

The grossed-up amount in relation to an attribution debit is: (a) where subparagraph 372(2)(b)(i) applied in relation to the debit—the amount of the debit; or (b) where subparagraph 372(2)(b)(ii)…

Section 381 — Separate attributable income for each attributable taxpayer

Where, at the end of a statutory accounting period (in this Division called the eligible period) of a company: (a) the company is a CFC; and (b) there are one or more attributable taxpayers in…

Section 382 — Attributable income is taxable income calculated on certain assumptions

(1) The attributable income is the amount that would be the eligible CFC’s taxable income for the eligible period if certain assumptions were made. (2) For the purposes of describing those…

Section 383 — Basic assumptions

The assumptions are: (a) that the eligible CFC is a taxpayer and a resident, within the meaning of section 6, during the whole of the eligible period; and (b) that the eligible period is a year of…

Section 384 — Additional assumption for unlisted country CFC

(1) Where the eligible CFC is a resident of an unlisted country at the end of the eligible period, it is to be assumed: (a) that the only amounts of notional assessable income are those to which…

Section 385 — Additional assumption for listed country CFC

(1) Where the eligible CFC is a resident of a listed country at the end of the eligible period, it is to be assumed: (a) that the only amounts of notional assessable income are those to which…

Section 386 — Adjusted tainted income

(1) The references in sections 384, 385 and 457 to adjusted tainted income are references to amounts that would be passive income, tainted sales income or tainted services income if certain…

Section 387 — Reduction of attributable income because of interim dividends

(1) Where: (a) during the eligible period, the eligible CFC pays a dividend to the eligible taxpayer or to another entity; and (b) if the dividend is paid to the eligible taxpayer—the whole or part…

Section 388 — Double tax agreements to be disregarded

In calculating the attributable income of the eligible CFC, the International Tax Agreements Act 1953 is to be disregarded, except for the purpose of references in this Act to that Act.

Section 389 — Certain provisions to be disregarded in calculating attributable income

For the purpose of applying this Act in calculating the attributable income of the eligible CFC, the following provisions are to be disregarded: (a) except for the purposes of a reference in any…

Section 389A — Other provisions to be disregarded in calculating attributable income

For the purpose of applying this Act in calculating the attributable income of the eligible CFC, the following provisions are to be disregarded: (a) Division 974 of the Income Tax Assessment Act…

Section 390 — Elections to be made by eligible taxpayer

(1) For the purpose of applying this Act in calculating the attributable income of the eligible CFC, any declaration, election, choice or selection that may be made, any notice that may be given or…

Section 392 — Notional assessable amounts are to be pre-tax

(1) An amount included in the notional assessable income of the eligible CFC is an amount before the payment of any foreign tax or Australian tax in respect of the amount.

Section 393 — Notional allowable deduction for taxes paid

(1) Foreign tax or Australian tax paid by the eligible CFC in respect of amounts included in the notional assessable income of the eligible CFC for the eligible period, whether paid before, during or…

Section 394 — Notional allowable deduction for eligible finance share dividends, widely distributed finance share dividends and transitional finance share dividends

Where: (a) the eligible CFC pays an eligible finance share dividend, a widely distributed finance share dividend or a transitional finance share dividend during or after the eligible period; and (b)…

Section 395 — Expenditure incurred to produce income or profits in later statutory accounting periods

In determining whether expenditure incurred by the eligible CFC during the eligible period for the purpose of gaining or producing income or profits in a later statutory accounting period is a…

Section 396 — Modified application of sections 25A and 52

(1) For the purpose of applying this Act and the Income Tax Assessment Act 1997 in calculating the attributable income of an eligible CFC, sections 25A and 52 of this Act and sections 15-15 and 25-40…

Section 397 — Modified application of trading stock provisions

When applying this Act and the Income Tax Assessment Act 1997 in calculating the attributable income of the eligible CFC: (a) Subdivision B of Division 2 of Part III of this Act has effect as if the…

Section 398 — Modified application of depreciation provisions

(1) Where property has been held by the eligible CFC in a non-attributable income period in relation to the application of a depreciation provision to the property (in relation to the eligible CFC…

Section 398A — Application of Division 3A of Part III

(1) Subject to subsection (2), Division 3A of Part III applies in calculating the attributable income of the eligible CFC. (2) Section 82R does not apply, subject to subsection (3), to outgoings…

Section 399 — Modifications of net income of partnerships and trusts

(1) If, in calculating the attributable income of the eligible CFC, it is necessary to determine the net income of a partnership or trust under section 90 or 95, it is to be assumed that: (a) the…

Section 399A — Modified application of bad debt etc. provisions

(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC for the eligible period: (b) section 63D of this Act is to be disregarded; and (c) subsection (2)…

Section 400 — Modified cross-border requirement for transfer pricing

(1) This section applies in calculating the attributable income of the eligible CFC. (2) Conditions that operate between the eligible CFC and another entity do not satisfy the cross-border test in…

Section 401 — Reduction of disposal consideration or capital proceeds if attributed income not distributed

(1) If: (a) it is necessary, for the purposes of applying a provision of this Act in calculating the attributable income of the eligible CFC in relation to the eligible taxpayer, to take into…

Section 402 — Additional notional exempt income—unlisted or listed country CFC

(1) This section applies where the eligible CFC is a resident of either a listed country or an unlisted country at the end of the eligible period. (2) Each of the following is notional exempt income…

Section 403 — Additional notional exempt income—unlisted country CFC

If the eligible CFC is a resident of an unlisted country at the end of the eligible period, the notional exempt income of the eligible CFC in relation to the eligible period includes income or…

Section 404 — Application of Subdivision 768-A of the Income Tax Assessment Act 1997

(1) For the purpose of applying Subdivision 768-A of the Income Tax Assessment Act 1997 (about returns on foreign investment) in calculating the attributable income of the eligible CFC, disregard…

Section 405 — Interpretation

(1) In this Subdivision: commencing day has the meaning given by section 406. commencing day asset has the meaning given by section 406. (3) Some provisions of this Subdivision say that a payment can…

Section 406 — Meaning of commencing day and commencing day asset

(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, the eligible CFC’s commencing day is the later of: (a) the last day of the most recent period…

Section 408 — Certain capital gains and losses disregarded

If a CFC makes a capital gain or capital loss from a CGT event that is not disregarded under Subdivision 855-A of the Income Tax Assessment Act 1997, or would have made a capital gain from the event…

Section 408A — Certain events before commencing day ignored

For the purposes of applying this Act in calculating the attributable income of an eligible CFC, if the eligible CFC’s commencing day is after 30 June 1995, Parts 3-1 and 3-3 of the Income Tax…

Section 409 — Losses before 30 June 1990 to be disregarded

For the purposes of applying this Act in calculating the attributable income of the eligible CFC, capital losses incurred before the end of 30 June 1990 are disregarded.

Section 410 — General modifications—CGT

For the purposes of applying this Act in calculating the attributable income of the eligible CFC, Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997 apply as if these provisions were…

Section 411 — Commencing day assets taken to have been acquired on commencing day

(1) Subject to this section, for the purposes of applying this Act in calculating the attributable income of the eligible CFC, a commencing day asset of the eligible CFC is taken to have been…

Section 412 — Cost base of commencing day asset

(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, the following provisions have effect. (2) The first element of the cost base of each commencing…

Section 413 — Adjustment of cost base as at commencing day—return of capital

(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, the following provisions have effect. (2) Where: (a) commencing day assets of the eligible CFC…

Section 414 — Exercise of rights

(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, the following provisions have effect. (2) Despite section 130-40 of the Income Tax Assessment Act…

Section 418 — Options

(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, the following provisions have effect. (2) Subsection 104-30(5) of the Income Tax Assessment Act…

Section 418A — Effect of change of residence from Australia to listed or unlisted country

(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, where: (a) disregarding the residency assumption, at any time (in this section called the…

Section 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…

Section 421 — Elections under CGT roll-over provisions

(1) Subject to this section, for the purpose of applying this Act in calculating the attributable income of the eligible CFC for the eligible period, any election or choice that may be made, by the…

Section 422 — Adjustment of capital proceeds where change of residence by eligible CFC from unlisted to listed country

(1) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, in relation to the eligible period in relation to the eligible taxpayer, the following provisions…

Section 423 — Adjustment of capital proceeds where section 47A applies to rolled-over assets

Section 425 — Sometimes-exempt income etc.

(1) Where an amount is not included in the eligible CFC’s notional assessable income for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible…