Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128af
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128AF
Character Range: 1239134–1240214

128AF  Payments through interposed entities
 (1) This section applies if:
 (a) a payment received by a non‑resident through one or more interposed companies, partnerships, trusts or other persons is attributable to an amount of dividends, interest or royalties paid by a resident; and
 (b) one or more of the interposed companies, partnerships, trusts or other persons is exempt from tax.
 (1A) However, this section does not apply if one or more of the interposed entities is an AMIT for the year of income in which the payment is received.
Note: See Division 12A in Schedule 1 to the Taxation Administration Act 1953 for provisions about withholding tax that apply specifically to AMITs.
 (2) If this section applies, the amount of dividends, interest or royalties paid by a resident is taken, for the purposes of this Division, to have been paid by the resident directly to the non‑resident.
 (3) For the purposes of this section, a person is exempt from tax if, at the time at which the payment was received by the non‑resident, all income of the person was exempt from tax.