Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128b:p5
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128B (pt 5/10)
Character Range: 1249503–1252191

2012; or
 (n) income that is non‑assessable non‑exempt income because of Division 880 of the Income Tax Assessment Act 1997 or Division 880 of the Income Tax (Transitional Provisions) Act 1997.
 (3A) Paragraph (3)(ga) does not apply to income consisting of a dividend, or a part of a dividend, that is derived by the trustee of a trust, or a partnership, to the extent (if any) to which any amount paid to, or applied for the benefit of, a taxpayer (being a beneficiary in the trust or a partner in the partnership) that:
 (a) was attributable to the dividend; and
 (b) was paid or applied:
 (i) in respect of an interest in the trust or partnership that was acquired, or was acquired for a period that was extended, at or after the commencing time; or
 (ii) under a financing arrangement (including an arrangement extending an earlier arrangement) entered into at or after the commencing time;
may reasonably be regarded as equivalent to the payment of interest on a loan.
 (3B) In subsection (3A):
commencing time means 7.30 pm by legal time in the Australian Capital Territory on 13 May 1997.
financing arrangement has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
 (3C) In determining for the purposes of subsection (3A) the extent (if any) to which an amount may reasonably be regarded as equivalent to the payment of interest on a loan, regard is to be had to:
 (a) the way in which the amount was calculated; and
 (b) the conditions applying to the payment or application of the amount; and
 (c) any other relevant matters.
 (3CA) Paragraph (3)(jb) applies to income derived by the superannuation fund mentioned in subparagraph (3)(jb)(i) only if:
 (a) the superannuation fund satisfies the portfolio interest test in subsection (3CC) in relation to the entity mentioned in subsection (3CB) (the test entity):
 (i) at the time the income was derived; and
 (ii) throughout any 12 month period that began no earlier than 24 months before that time and ended no later than that time; and
 (b) the superannuation fund does not, at the time the income was derived, have influence of a kind described in subsection (3CD) in relation to the test entity; and
 (c) the income is not non‑assessable non‑exempt income of the superannuation fund because of:
 (i) Subdivision 880‑C of the Income Tax Assessment Act 1997; or
 (ii) Division 880 of the Income Tax (Transitional Provisions) Act 1997.
 (3CB) For the purposes of subsection (3CA), the test entity is:
 (a) unless paragraph (b) applies—the entity that paid the interest, dividends or non‑share dividends as mentioned in subparagraph (3)(jb)(ii); or
 (b) if subsection 128A(3) applies in relation to a