Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128b:p9
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128B (pt 9/10)
Character Range: 1259045–1261590

interest incurred by the borrower for the purpose of gaining or producing income to be so derived; or
 (ii) is interest incurred by the borrower in carrying on a business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the borrower in so carrying on business at or through a permanent establishment of the borrower in Australia;
the interest or the part of the interest, as the case may be, is an outgoing incurred by the borrower in carrying on business in Australia at or through a permanent establishment of the borrower in Australia.
 (9A) For the purposes of subparagraphs (2B)(b)(i) and (2C)(b)(i), where:
 (a) a royalty is paid, to a person by another person, being a person to whom this section applies, carrying on business in a country outside Australia; and
 (b) the royalty, or a part of the royalty:
 (i) is a royalty incurred by the other person in gaining or producing income that is derived by the other person otherwise than in carrying on business in a country outside Australia at or through a permanent establishment of the other person in that country or is a royalty incurred by the other person for the purpose of gaining or producing income to be so derived; or
 (ii) is a royalty incurred by the other person in carrying on business for the purpose of gaining or producing income and is reasonably attributable to income that is derived, or may be derived, by the other person otherwise than in so carrying on business at or through a permanent establishment of the other person in a country outside Australia;
the royalty or the part of the royalty, as the case may be, is not an outgoing incurred by the other person in carrying on business in a country outside Australia at or through a permanent establishment of the other person in that country.
 (9B) For the purposes of subparagraphs (2B)(b)(ii) and (2C)(b)(ii), where:
 (a) a royalty is paid to a person by another person or other persons (the licensee), being:
 (i) another person who is or was carrying on business in Australia and is not or was not a resident; or
 (ii) other persons who are or were carrying on business in Australia and each of whom is not or was not a resident; and
 (b) the royalty or a part of the royalty:
 (i) is a royalty incurred by the licensee in gaining or producing income that is derived by the licensee in carrying on business in Australia at or through a permanent establishment of the licensee in Australia or is a royalty incurred by the licensee