Document ID: chunk:federal_register_of_legislation:C2025C00014:section:23ah:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 23AH (pt 2/5)
Character Range: 132706–135261

through a PE of the company in a listed country or unlisted country; and
 (c) had the loss been a gain, it would be disregarded under subsection (3).

Exception relating to hybrid mismatch rules
 (4A) Subsection (2) does not apply to foreign income derived by the company if the foreign income is branch hybrid mismatch income (see subsection (14C)).

Exceptions: listed country PE
 (5) Subsection (2) does not apply to foreign income derived by the company if:
 (a) the PE is in a listed country; and
 (b) the PE does not pass the active income test (see subsection (12)); and
 (c) the foreign income is both:
 (i) adjusted tainted income (see subsection (13)); and
 (ii) eligible designated concession income in relation to a listed country.
 (6) Subsection (3) or (4) does not apply to a capital gain or capital loss if:
 (a) the PE is in a listed country; and
 (b) for a capital gain—the gain is from a tainted asset and is eligible designated concession income in relation to a listed country; and
 (c) for a capital loss—the loss is from a tainted asset and would be eligible designated concession income in relation to a listed country if it were a capital gain.

Exceptions: unlisted country PE
 (7) Subsection (2) does not apply to foreign income derived by the company if:
 (a) the PE is in an unlisted country; and
 (b) the PE does not pass the active income test (see subsection (12)); and
 (c) the foreign income is adjusted tainted income (see subsection (13)).
 (8) Subsection (3) or (4) does not apply to a capital gain or capital loss if:
 (a) the PE is in an unlisted country; and
 (b) the gain or loss is from a tainted asset.

Income derived in disposing of a business
 (9) This section applies to foreign income derived by an entity in the course of disposing, in whole or in part, of a business carried on in a listed country or unlisted country at or through a PE of the entity in the listed country or unlisted country as if the foreign income had been derived in carrying on that business.

Interposed partnerships or trusts
 (10) This section applies to any indirect interest (through one or more partnerships or trust estates) of a company in foreign income derived by a partnership or trustee through a PE of the partnership or trustee in a listed country or unlisted country as if that indirect interest were foreign income derived by the company through a PE of the company in that country.
 (11) This section applies to any indirect interest (through one or more partnerships or trust estates) of a company in a capital gain