Document ID: chunk:federal_register_of_legislation:C2025C00014:section:450:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 450 (pt 1/3)
Character Range: 2083665–2086498

450  AFI subsidiaries—asset disposals and currency transactions
 (1) The passive income, or the tainted services income, of a company of a statutory accounting period does not include income where the following conditions are satisfied:
 (a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;
 (b) the income was derived from carrying on a business of trading in any or all of the following tainted assets:
 (i) non‑share futures contracts;
 (ii) non‑share forward contracts;
 (iii) interest rates swap contracts;
 (iv) currency swap contracts;
 (v) forward exchange rate contracts;
 (vi) forward interest rate contracts;
 (vii) a right or option in respect of such a contract;
 (viii) any similar financial instrument.
 (2) For the purposes of this Part, in determining the net gains that accrued to a company in a statutory accounting period in respect of the disposal of tainted assets, where the following conditions are satisfied in relation to the disposal of a tainted asset:
 (a) at the time of the disposal of the tainted asset, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;
 (b) the disposal was made in the course of carrying on that business;
 (c) the tainted asset is covered by paragraph (1)(b);
the disposal of the tainted asset is to be disregarded.
 (3) For the purposes of this Part, in determining the net tainted currency exchange gains that accrued to a company during a statutory accounting period, where the following conditions are satisfied in relation to a particular currency exchange gain or a particular currency exchange loss:
 (a) at the time the currency exchange gain or the currency exchange loss, as the case may be, was realised, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;
 (b) the currency exchange gain, or the currency exchange loss, as the case may be, was realised:
 (i) in the course of carrying on that business; and
 (ii) in the course of currency dealing;
that currency exchange gain or that currency exchange loss, as the case requires, is to be disregarded.
 (4) The passive income of a company of a statutory accounting period does not include income where the following conditions are satisfied:
 (a) at the time the income was derived, the company was an AFI subsidiary whose sole or principal business was financial intermediary business;
 (b) the income was derived from carrying on a business of trading in either of the following tainted assets:
 (i) loans (including deposits with a bank or other financial institution);
 (ii) debenture stock, bonds, debentures, certificates of entitlement, bills of exchange, promissory notes or other securities.
 (5) For the purposes