Document ID: chunk:federal_register_of_legislation:C2025C00014:section:385:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 385 (pt 1/3)
Character Range: 1974470–1977098

385  Additional assumption for listed country CFC
 (1) Where the eligible CFC is a resident of a listed country at the end of the eligible period, it is to be assumed:
 (a) that the only amounts of notional assessable income are those to which subsection (2) applies; and
 (b) that all other income is notional exempt income.
 (2) Subject to subsection (4), the amounts of notional assessable income are:
 (a) amounts that would be included in the notional assessable income of the eligible CFC for the eligible period under this Act as modified in accordance with Subdivisions B to D if the only income or other amounts derived during the eligible period, and any earlier statutory accounting period, by the eligible CFC were:
 (i) where the eligible CFC does not pass the active income test for the eligible period in relation to the eligible taxpayer—adjusted tainted income (within the meaning of section 386) that is eligible designated concession income in relation to the listed country or any other listed country; and
 (ii) income or other amounts, of a kind specified in the regulations, that:
 (A) are not eligible designated concession income of the eligible CFC in relation to the listed country or any other listed country; and
 (B) are not treated as derived from sources in the listed country for the purposes of the tax law of the listed country; and
 (C) pass the test set out in subsection (2A); and
 (b) amounts included in the notional assessable income of the eligible CFC for the eligible period under section 102AAZD of this Act as modified in accordance with Subdivisions B to D; and
 (c) amounts included in the notional assessable income of the eligible CFC for the eligible period under Division 6 of Part III of this Act as so modified, where either of the following conditions (but not necessarily the same condition) is satisfied in relation to the listed country and each other listed country:
 (i) the amounts are not subject to tax in that listed country in a tax accounting period ending before the end of the eligible period or commencing during the eligible period;
 (ii) the amounts are subject to tax in that listed country in such a tax accounting period and are designated concession income in relation to the listed country; and
 (d) amounts that would be included in the notional assessable income of the eligible CFC for the eligible period under Division 5 of Part III of this Act, as modified in accordance with Subdivisions B to D of this Division, in relation to any partnership if its net income included only:
 (i) where the eligible CFC does not pass the active income test for