Taxation Determination TD 93/241







[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. Subsection 121EE(2) of the ITAA defines assessable OB income as: | Fee income received from selling down a security will be included in assessable OB income under paragraph (b); that is, it is income derived because of OB activities. | However, the restrictions relating to the OB activity continue to apply and therefore the selling down or disposal of the interest in the loan must be to an offshore person. | Example: An OBU [1] makes a loan to a New Zealand resident in US dollars. This activity satisfies the definition of borrowing or lending activity in subsection 121D(2). The OBU decides to sell down the loan to an offshore person. The fee income derived from this sale is assessable OB income because it is assessable income as a result of an OB activity. | Commissioner of Taxation 16/12/93


Related rulings: TD 93/136
Legislative references: ITAA 121EE(2)