Document ID: chunk:federal_register_of_legislation:C2025C00014:section:356:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 356 (pt 2/3)
Character Range: 1935875–1938525

period;
 (ii) the profits of the company for the statutory accounting period; and
 (b) assuming that the rights to such distributions that the entity holds, or is entitled to acquire, at the test time were the same at all other times during the statutory accounting period; and
 (c) ascertaining the percentage concerned:
 (i) at the end of the statutory accounting period instead of at the test time; and
 (ii) on that assumption.
 (4) Eligible finance shares, widely distributed finance shares and transitional finance shares in a company are to be ignored for the purposes of the application of subsection (1) to the company.
 (4A) Shares in a company that is treated as a real estate investment trust for the purposes of the Internal Revenue Code 1986 of the United States of America are to be ignored for the purposes of the application of subsection (1) to the company if the conditions in subsection (4B) or (4C) are satisfied.
 (4B) The condition in this subsection is that the taxpayer who holds the shares satisfies the Commissioner that:
 (a) the shares that the taxpayer holds at the end of the entity's statutory accounting period are held for the sole purpose of investing directly, or indirectly through one or more interposed entities, in:
 (i) a business conducted in the United States of America; or
 (ii) real property located in the United States of America; and
 (b) the company does not directly, or indirectly through one or more interposed entities:
 (i) have an interest in income or gains derived from sources outside the United States of America; or
 (ii) hold an interest in a FIF (within the meaning of former Part XI) that is not resident in the United States of America; or
 (iii) hold real property that is not located in the United States of America.
 (4C) The condition in this subsection is that the taxpayer who holds the shares satisfies the Commissioner that:
 (a) the shares that the taxpayer holds at the end of the entity's statutory accounting period are held for the sole purpose of investing directly, or indirectly through one or more interposed entities, in:
 (i) a business conducted in the United States of America; or
 (ii) real property located in the United States of America; and
 (b) throughout the entity's statutory accounting period, the total value of:
 (i) any interests that the company has in income or gains derived from sources outside the United States of America; and
 (ii) any interests that the company has in FIFs (within the meaning of former Part XI) that are not resident in the United States of America; and
 (iii) any real property held by the company that is not located in the