Document ID: chunk:federal_register_of_legislation:C2025C00014:section:356:p3
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 356 (pt 3/3)
Character Range: 1938313–1940367

any interests that the company has in FIFs (within the meaning of former Part XI) that are not resident in the United States of America; and
 (iii) any real property held by the company that is not located in the United States of America;
  does not exceed 5% of the total value of all interests held by the company in other entities; and
 (c) throughout the entity's statutory accounting period, the total value of assets held by the company that:
 (i) produce income from sources outside the United States of America; or
 (ii) if disposed of would give rise to a gain from a source outside the United States of America;
  does not exceed 5% of the total value of all the assets held by the company.
 (4D) For the purposes of subsection (4C), the value of interests and the value of assets is to be determined using the accounting records of the company.
 (5) An entity that is an eligible transferor at a particular time in relation to a CFT holds a direct attribution interest in the CFT at that time equal to 100%.
 (6) Subsection (5) does not apply if:
 (a) the eligible transferor is a natural person (other than a natural person in the capacity of a trustee); and
 (b) the CFT is a non‑resident family trust in relation to the natural person.
 (7) An entity (in this subsection called the lower entity) that is a beneficiary in a CFT holds a direct attribution interest in the CFT at a particular time equal to:
 (a) the percentage of the income of the CFT represented by the share of the income to which the lower entity is entitled, or that the lower entity is entitled to acquire; or
 (b) the percentage of the corpus of the CFT represented by the share of the corpus to which the lower entity is entitled, or that the lower entity is entitled to acquire;
or, if those percentages differ, the greater of those percentages.
 (8) An entity that holds a direct attribution interest in a CFT at a particular time because of subsection (5) is not to be taken to hold any direct attribution interest in the CFT at that time because of subsection (7).