Document ID: chunk:federal_register_of_legislation:C2025C00014:section:177da:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 177DA (pt 2/3)
Character Range: 1619867–1622524

the contract for the supply are performed, and are able to be performed, by:
 (i) the foreign entity; or
 (ii) another entity referred to in subparagraph (1)(a)(iii); or
 (iii) any other entities;
 (c) the result, in relation to the operation of any foreign law relating to taxation, that (but for this Part) would be achieved by the scheme.

Deferral of foreign tax liabilities
 (3) For the purposes of paragraph (1)(b), a deferral of a taxpayer's liabilities to tax under a foreign law is taken to be a reduction of those liabilities, unless there are reasonable commercial grounds for the deferral.

Tax benefit
 (4) Despite subsection (1), this Part applies to the scheme because of this section only if the relevant taxpayer has obtained, or would but for section 177F obtain, a tax benefit in connection with the scheme.

Commissioner not required to enquire into foreign tax matters
 (5) The Commissioner is required to have regard to a matter referred to in paragraph (2)(c) only so far as information relevant to that matter is available to the Commissioner, and is not required to acquire further information in order to have regard to that matter.

Schemes outside Australia
 (6) This section applies whether or not the scheme has been or is entered into or carried out in Australia or outside Australia or partly in Australia and partly outside Australia.

Income from supply by trust estate or partnership
 (7) Subsection (8) applies if:
 (a) both of the following conditions are satisfied:
 (i) a trust estate or partnership makes a supply to an entity;
 (ii) that entity would be an Australian customer of the trust estate or partnership if the trust estate or partnership were a foreign entity; and
 (b) because of the supply, an amount of ordinary income, or statutory income, is included in the assessable income of the trust estate or partnership (as worked out for the purposes of working out its net income for a year of income); and
 (c) the trust estate or partnership has a foreign entity participant at any time in that year of income; and
 (d) any of the following conditions are satisfied at the time the supply is made:
 (i) the trust estate or partnership is connected with (within the meaning of the Income Tax Assessment Act 1997) a foreign entity;
 (ii) the trust estate or partnership would be an affiliate (within the meaning of that Act) of a foreign entity if the trust estate or partnership were an individual or a company;
 (iii) the trust estate or partnership and a foreign entity are members of the same global group.
 (8) For the purposes of this section:
 (a) treat the foreign entity mentioned in paragraph (7)(d)