Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1994 No. 138 of 1994 - SECT 12

12. Section 96A of the Principal Act is amended:

   (a)  by inserting after subsection (3) the following subsections:

"(3A) If:

   (a)  under section 529, the assessable income of a year of income of a CFT
        includes an amount of foreign investment fund income that, under Part
        XI, accrued to the CFT from a FIF in respect of a notional accounting
        period of the FIF; and

   (b)  a statutory accounting period of a CFC coincides with that notional
        accounting period of the FIF; and

   (c)  section 456 applies at the end of the statutory accounting period of
        the CFC to a taxpayer who is a beneficiary in the CFT; and

   (d)  the FIF is the same entity as the CFC; then the beneficiary's share of
        the net income of the CFT of the year of income is to be calculated as
        if the amount of foreign investment fund income had not been included
        in the CFT's assessable income.

"(3B) If:

   (a)  under section 529, the assessable income of a year of income of a CFT
        includes an amount of foreign investment fund income that, under Part
        XI, accrued to the CFT from a FIF in respect of a notional accounting
        period of the FIF; and

   (b)  each of 2 or more statutory accounting periods of a CFC occurs partly
        within that notional accounting period of the FIF; and

   (c)  section 456 applies at the end of each of these statutory accounting
        periods of the CFC to a taxpayer who is a beneficiary in the CFT; and

   (d)  the FIF is the same entity as the CFC; then the beneficiary's share of
        the net income of the CFT of the year of income is to be calculated as
        if the amount of foreign investment fund income had not been included
        in the CFT's assessable income.";

   (b)  by inserting in subsection (5) the following definitions:

" 'CFC' has the same meaning as in Part X;
'CFT' has the same meaning as in Part X;
'statutory accounting period' has the same meaning as in Part X.".