EX 35 Exemption for interest in FIF resident in Australia

A person’s rights in a FIF in an income year are not an attributing interest if,—

(a)

for the total period in the year for which the person has rights in the FIF, the item income interest calculated under section EX 50(4) for the person and the FIF is 10% or more; and

(b)

at all times in the year, the FIF is—

(i)

resident in Australia; and

(ii)

under Australian law, subject to income tax on its income or treated as part of the head company of a consolidated group subject to income tax on its income; and

(iii)

treated as being resident in Australia under all agreements between the Government of Australia and the governments of other countries or territories that would be a double tax agreement if between the Government of New Zealand and the government of the other country or territory; and

(c)

the FIF’s liability for income tax for the income year is not reduced by—

(i)

an exemption from income tax for income derived from business activities carried on outside Australia:

(ii)

a special allowance, relief, or exemption with respect to offshore banking units; and

(cb)

the FIF is not a unit trust or is a unit trust subject under Australian law to income tax on its income in the same way as a company; and

(d)

at all times in the year, the person is none of the following:

(i)

a portfolio investment entity:

(ii)

a superannuation scheme:

(iii)

a unit trust:

(iv)

a life insurer:

(v)

a group investment fund.

Defined in this Act: attributing interest, double tax agreement, FIF, group investment fund, income tax, income year, life insurer, portfolio investment entity, resident in Australia, superannuation scheme, unit trust

Section EX 35: replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 29(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section EX 35(a): replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 24 February 2016, by section 146(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section EX 35(b)(iii): amended (with effect on 1 April 2014), on 30 June 2014, by section 93(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EX 35(cb): inserted (with effect on 1 April 2014 and applying for income years beginning on or after 1 July 2014), on 30 June 2014, by section 93(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EX 35 list of defined terms direct income interest: repealed (with effect on 1 July 2011), on 24 February 2016, by section 146(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).