Taxation Determination TD 93/216







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. Yes, where the fee income is derived after the entity has been registered as an OBU. [1] | 2. When an entity earns fee income for completing an assignment on a success only basis, the OB income is derived on the date that the assignment was completed and the entity becomes entitled to its fee. Accordingly, income derived after the date of registration of the OBU upon successful completion of an assignment that otherwise qualifies as an OB activity will constitute OB income. This is the case notwithstanding that some work may have been done prior to registration provided that this work itself did not give rise to an entitlement to income. | 3. This situation is different to that described in TD 93/133. The difference between the two cases is in the timing of the derivation of income. A success only basis means that the income is derived upon successful completion of the project - in this case, after the entity is registered as an OBU; whereas, the income derived in TD 93/133 accrues to the entity prior to registration as an OBU. | Commissioner of Taxation 28/10/93 | Footnotes: Previously issued as Draft TD 93/D214


Related rulings: TD 93/131 OB activities entered into by an OBU prior to 1 July 1992 TD 93/133 OB activities entered into by an OBU prior to registration as an OBU
Legislative references: ITAA Pt III Div 9A
Subject references: Offshore banking OBUs advisory activity