Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 1/17)
Character Range: 234908–237607

3                         The company or *CFC is taken, under section 47A of the Income Tax Assessment Act 1936, to have paid you a dividend in relation to that event, and:

                          (a) some or all of the dividend is included in your assessable income under section 44 of that Act; or

                          (b) an amount is included in another entity's assessable income in respect of the dividend under section 458 or 459 of that Act

Note: For roll‑overs: see Divisions 122, 124 and 126.

 (2) The reduction is the lesser of:

 (a) the amount of the dividend; and

 (b) the amount of any *capital gain that, apart from the roll‑over, the company or *CFC would have made from the *CGT event if its *capital proceeds from the event had been the asset's market value (at the time of the event).

 (3) The amount of that *capital gain is worked out:

 (a) for the company—under this Part and Part 3‑3; or

 (b) for the *CFC—under this Part and Part 3‑3 in their application for the purpose of calculating the *attributable income of the CFC in relation to the entity referred to in paragraph (b) of condition 3 in the table in subsection (1).

Note: This section is disregarded in calculating the attributable income of a CFC: see section 410 of the Income Tax Assessment Act 1936.

116‑95  Company changes residence from an unlisted country

 (1) This section sets out what happens if:

 (a) a *CFC ceases at a time (the residency change time) to be a resident of an *unlisted country and becomes a resident of a *listed country; and

 (aa) subsection 457(3) of the Income Tax Assessment Act 1936 does not apply to the change of residence; and

 (b) because of the change in its residency status, an amount is included in an entity's assessable income under section 457 of the Income Tax Assessment Act 1936 (including because of paragraph 58(1)(d) of the Taxation Laws Amendment (Foreign Income) Act 1990); and

 (c) a *CGT event happens in relation to a *CGT asset (the CFC asset) that has the *necessary connection with Australia and that the CFC owned since the residency change time.

 (2) If the conditions in subsection (3) are satisfied, the *capital proceeds from the *CGT event are reduced by the amount worked out under subsection (4). If the conditions in subsection (5) are satisfied, those capital proceeds are increased by the amount worked out under subsection (6).

Reduction of capital proceeds

 (3) If all the *CFC's assets were *disposed of at the residency change time for their market values in the circumstances mentioned in subparagraph 457(2)(a)(i) of the Income Tax Assessment Act 1936:

 (a) *distributable profits of the CFC of a