Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 12/22)
Character Range: 6970867–6973551

the Income Tax Assessment Act 1936;
 (b) an amount that is not included in the entity's assessable income because of the operation of paragraph 99B(2)(e) of that Act;
 (c) the amount worked out using the formula:
  where:
          available franking credit means any part of the amount remaining after subsection (3) to the extent to which a *franking credit arises or will arise for the entity.
 (5) Reduce the amount remaining after subsection (4) by any of the entity's expenses that are reasonably related to that amount, except expenses the entity has deducted or can deduct under this Act. In applying this subsection to an amount covered by paragraph (3)(a), assume that amount is *non‑assessable non‑exempt income.
 (6) The result is an amount included in the entity's conduit foreign income.
 (7) This section applies to an entity as if it had derived an amount if the amount has been applied for its benefit (including by discharging all or part of a debt it owes) or as it directs.

802‑35  Capital gains and losses

Capital gains
 (1) The entity's conduit foreign income includes these amounts:
 (a) the amount by which a *capital gain of the entity is reduced because of the operation of section 768‑505;
 (b) a capital gain that is disregarded because of the operation of subsection 23AH(3) of the Income Tax Assessment Act 1936;
 (c) the amount of a capital gain that is disregarded as a result of the operation of an *international tax sharing treaty.

Capital losses
 (2) The entity's conduit foreign income is reduced by these amounts:
 (a) the amount by which a *capital loss of the entity is reduced because of the operation of section 768‑505;
 (b) a capital loss that is disregarded because of the operation of subsection 23AH(4) of the Income Tax Assessment Act 1936;
 (c) the amount of a capital loss that is disregarded as a result of the operation of an *international tax sharing treaty.

Timing rule
 (3) The adjustments are made under this section at the end of the income year in which the *CGT event occurred.

802‑40  Effect of foreign income tax offset on conduit foreign income
  The entity's conduit foreign income includes an amount if a tax offset arose for the entity under Division 770 for the income year immediately before the one in which the relevant time occurs. The amount is worked out using the formula:

802‑45  Previous declarations of conduit foreign income
  The entity's conduit foreign income is reduced if:
 (a) the entity makes a *frankable distribution that has an *unfranked part; and
 (b) the entity declares an amount of the unfranked part to be conduit foreign income.
The amount of the reduction is the amount so declared.