Taxation Determination TD 93/207







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 121D(6) of the Income Tax Assessment Act 1936 defines an investment activity as 'making, as broker or agent for, or trustee for the benefit of, an offshore person ... an investment with an offshore person ... or so making and managing such an investment ...' | 2. The supplementary explanatory memorandum to Taxation Laws Amendment Bill (No.) 4 1992 stated that the proposed investment activity provision as introduced to Parliament was to be amended 'to make it clear that an OBU [1] is acting in the capacity of a broker, agent or trustee in making or managing an investment for the benefit of an offshore person and not on its own behalf.' | 3. It is, therefore, immaterial whether the trust has an Australian trustee, as long as the other requirements of the subsection are complied with. | Commissioner of Taxation 28/10/93 | Footnotes: Previously issued as Draft TD 93/D202


Legislative references: ITAA 121D(6)
Subject references: Offshore banking; OBUs; investment activity