Taxation (International Investment and Remedial Matters) Act 2012

29 Section EX 35 replaced
  • (1) Section EX 35 is replaced by the following:

    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) at all times in the year, the rights are a direct income interest of 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 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

      • (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, direct income interest, double tax agreement, FIF, group investment fund, income tax, income year, life insurer, portfolio investment entity, resident in Australia, superannuation scheme, unit trust.

    (2) Subsection (1) applies for income years beginning on or after 1 July 2011.