Taxation Determination TD 93/202







Note: This is a consolidated version of this document. Refer to the Legal Database ( www.ato.gov.au/law ) to check its currency and to view the details of all changes. | 1. No. Although an OBU [1] can use OB money in any way it likes, for example, to pay expenses, dividends etc, it cannot 'loan' or transfer those funds to the domestic part of the bank, and have the domestic part, at a later date, repay the funds and then claim that the repayment constitutes OB money. | 2. A financial institution that is registered as an OBU may need funding to meet operating expenses, tax payments, and the like. The OBU is free to use any part of its OB money, say retained OB profits, to meet these expenses. However, once those funds have been expended they can only be replaced by funds which are OB money, that is: | Commissioner of Taxation 28/10/93 | Footnotes: Previously issued as Draft TD 93/D196


Legislative references: ITAA 121C
Subject references: non-OB money; offshore banking