Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 8/22)
Character Range: 6960715–6963805

make a *foreign exchange retranslation election; and
 (b) the election ceases to have effect or ceases to apply to an *arrangement.
 (2) You are taken, for the purposes of this Division, to have:
 (a) disposed of the *arrangement for its fair value immediately before the election ceases to have effect or ceases to apply to the arrangement; and
 (b) reacquired the arrangement at its fair value immediately after the election ceases to have effect or ceases to apply to the arrangement.
Note: Paragraph (a) means that there would be a forex realisation event 9 in relation to the arrangement.

Division 802—Foreign residents' income with an underlying foreign source

Table of Subdivisions
802‑A Conduit foreign income

Subdivision 802‑A—Conduit foreign income

Guide to Subdivision 802‑A

802‑5  What this Subdivision is about

      A distribution that an Australian corporate tax entity makes to a foreign resident is not subject to dividend withholding tax, and is not assessable income, to the extent that the entity declares it to be conduit foreign income.
      An Australian corporate tax entity has an amount that is non‑assessable non‑exempt income if it receives a distribution including conduit foreign income from another such entity and it makes a distribution including conduit foreign income.
      This Subdivision sets out the method of working out an entity's conduit foreign income.
      It also discourages streaming of distributions to entities that can take advantage of the receipt of conduit foreign income.

Table of sections

Operative provisions
802‑10 Objects
802‑15 Foreign residents—exempting CFI from Australian tax
802‑17 Trust estates and foreign resident beneficiaries—exempting CFI from Australian tax
802‑20 Distributions between Australian corporate tax entities—non‑assessable non‑exempt income
802‑25 Conduit foreign income of an Australian corporate tax entity
802‑30 Foreign source income amounts
802‑35 Capital gains and losses
802‑40 Effect of foreign income tax offset on conduit foreign income
802‑45 Previous declarations of conduit foreign income
802‑50 Receipt of an unfranked distribution from another Australian corporate tax entity
802‑55 No double benefits
802‑60 No streaming of distributions

Operative provisions

802‑10  Objects
  The objects of this Subdivision are:
 (a) to encourage the establishment in Australia of regional holding companies for foreign groups; and
 (b) to improve Australia's attractiveness as a continuing base for its multinational companies;
by providing relief from tax on *distributions by *Australian corporate tax entities to *members who are foreign residents or other Australian corporate tax entities if those distributions relate to *conduit foreign income.

802‑15  Foreign residents—exempting CFI from Australian tax
 (1) So much of the *unfranked part of a *frankable distribution made by an *Australian corporate tax entity that the entity declares, in its *distribution statement, to be *conduit foreign income:
 (a) is not assessable income and is not *exempt income of a foreign resident;