Taxation Determination TD 93/204







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, unless the share capital is subscribed by the Australian branch. | 2. The definition of 'non-OB money' in section 121C of the Income Tax Assessment Act 1936 excludes share capital subscribed in the OBU [1] by a non-resident, unless the payment of the subscription moneys occurred in the carrying on of a business in Australia by the non-resident, at or through a permanent establishment (eg a branch) of the non-resident. | 3. It is quite clear from the wording of the definition that the only circumstances where share capital subscribed by a non-resident could constitute non-OB money would be where the funds flow directly from the Australian branch. | Commissioner of Taxation 28/10/93 | Footnotes: Previously issued as Draft TD 93/D198


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