Statutory Rules 1994 No. 4121
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Income Tax Regulations2 (Amendment)
I, The Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Income Tax Assessment Act 1936.
Dated 6 December 1994.
BILL HAYDEN
Governor-General
By His Excellency’s Command,
GEORGE GEAR
Assistant Treasurer
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1. Commencement
1.1 These Regulations are taken to have commenced on 1 July 1989.
2. Amendment
2.1 The Income Tax Regulations are amended as set out in these Regulations.
3. Regulation 152C (When are income or profits subject to a reduction of tax?)
3.1 Subregulation 152C (3):
Omit “income or profits mentioned in subregulation 152C (1)”, substitute “income or profits derived by an entity referred to in subregulation 152C (1)”.
3.2 Subregulation 152C (3A):
Omit the subregulation, substitute:
“(3A) Subject to subregulation (3C), paragraph 152C (1) (g) does not apply to the reduction, under the tax law of a listed country, of income or profits derived by an entity referred to in subregulation 152C (1), to the extent that the tax law permits the deduction, from the relevant income or profits, of losses or outgoings incurred, in deriving any income or profits, by a company other than the entity (in this regulation called ‘the loss company’) if, during the period stated in subregulation (3B):
(a) the entity is:
(i) a CFC in relation to an Australian entity; and
(ii) a resident, within the meaning of section 332 of the Act, of the listed country; or
(b) the entity is a company, resident in Australia, that carries on a business in the listed country at or through a permanent establishment in the listed country.”.
3.3 Paragraph 152C (3C) (a):
Omit the paragraph, substitute:
“(a) at all times during the loss period (as defined in subregulation (7)), the loss company is either:
(i) a resident, within the meaning of section 332 of the Act, of the listed country, and a CFC in relation to either:
(A) if the entity in subregulation (3A) is a CFC—the Australian entity referred to in paragraph (3A) (a); or
(B) in any other case—the entity referred to in paragraph (3A) (b); or
(ii) a company resident in Australia that carries on a business in the listed country at or through a permanent establishment in the listed country; and”.
3.4 New subregulations 152C (3F) and (3G):
After subregulation 152C (3E), insert:
“(3F) In spite of subregulation (3A), income or profits derived by an entity:
(a) that is a CFC; and
(b) to which subregulation 152C (1) applies;
are to be taken to be ‘subject to a reduction of tax’ in the circumstances set out in subregulation (3G).
“(3G) Subregulation (3F) applies if the income or profits are reduced, under a tax law of a listed country, by losses or outgoings incurred by an Australian resident company, other than those losses or outgoings that are recognised under the tax law of the listed country as being incurred by the Australian resident company in deriving income or profits in carrying on a business, in the listed country, at or through a permanent establishment in the listed country.”.
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NOTES
1. Notified in the Commonwealth of Australia Gazette on 13 December 1994.
2. Statutory Rules 1936 No. 94 as amended by 1939 Nos. 6 and 42; 1940 Nos. 138 and 289; 1941 Nos. 120 and 327; 1942 Nos. 339 and 553; 1943 Nos. 80, 127 and 151; 1944 Nos. 90 and 124; 1945 Nos. 12, 85, 169 and 192; 1946 No. 135; 1947 Nos. 77 and 173; 1948 Nos. 115 and 162; 1949 Nos. 25 and 50; 1950 Nos. 63 and 101; 1951 Nos. 136 and 157; 1952 Nos. 89, 90 and 102; 1953 Nos. 55 and 88; 1954 Nos. 11, 99 and 112; 1955 No. 23; 1956 Nos. 34, 35 and 96; 1957 Nos. 39 and 74; 1958 Nos. 27 and 70; 1959 Nos. 25 and 81; 1960 Nos. 44 and 74; 1962 Nos. 15, 44 and 112; 1963 Nos. 53 and 92; 1964 Nos. 74, 121 and 134; 1965 Nos. 133 and 187; 1966 No. 156; 1967 Nos. 112 and 126; 1968 No. 1; 1969 No. 68; 1970 Nos. 43, 126, 168 and 213; 1971 Nos. 120 and 148; 1972 Nos. 48, 50 and 137; 1973 No. 266; 1974 Nos. 193, 226 and 267; 1975 Nos. 88, 89, 99, 101 and 213; 1976 Nos. 115, 188 and 212; 1977 Nos. 77, 107 and 248; 1978 Nos. 85 and 193; 1979 Nos. 126 and 239; 1980 Nos. 86, 137 and 149; 1981 Nos. 116 and 360; 1982 Nos. 115, 128, 267 and 280; 1983 Nos. 79, 87, 111, 213 and 319; 1984 Nos. 172, 286, 408, and 416; 1985 Nos. 21, 148, 274 and 278; 1986 No. 325 and Acts
NOTES— continued
Nos. 28, 49 and 112, 1986; Statutory Rules 1987 Nos. 92 and 120; 1988 Nos. 196, 208, 262, 381, 382, 383 and 384 and Act No. 97, 1988; Statutory Rules 1989 Nos. 67, 80, 115, 123, 124, 141, 250 and 358; 1990 Nos. 19, 126, 151, 152, 192, 347, 390, 398 and 468; 1991 Nos. 20, 121, 156, 158, 240, 300, 301, 390 and 391; 1992 Nos. 38, 129, 216, 313 and 449; 1993 Nos. 15, 46, 47, 65, 91, 159, 202, 216, 275, 288 and 370; 1994 Nos. 95, 96, 127, 174, 195, 219 and 399.