Document ID: chunk:federal_register_of_legislation:C2016A00010:clause:1_41
Version: federal_register_of_legislation:C2016A00010
Segment Type: clause
Provision Reference: sch 1 cl 41
Character Range: 32336–33860

41  After section 14‑200 in Schedule 1
Insert:

14‑205  Effect of look‑through earnout rights

Acquisitions of taxable Australian property from foreign residents
 (1) You must pay to the Commissioner an amount if:
 (a) you are required under section 14‑200 to pay an amount to the Commissioner in relation to your *acquisition of a *CGT asset; and
 (b) under a *look‑through earnout right relating to the CGT asset and the acquisition, you provide a *financial benefit to one or more entities; and
 (c) subsection 14‑210(1) (about foreign residents) would apply to at least one of those entities at the time you provide the financial benefit if section 14‑210 were modified as described in subsection (2) of this section; and
 (d) an amount is not already required to be withheld from a *withholding payment relating to the financial benefit.
Note 1: To work out the amount payable, see subsection (4).
Note 2: You must pay the amount on account of income tax possibly payable by the entities on their increased capital proceeds from receiving the financial benefit.

Modifications of the relevant foreign residents test
 (2) The modifications of section 14‑210 are as follows:

Modifications to section 14‑210 for the purposes of this section
                                                                  Column 1                                                Column 2
Item                                                              For a reference in that section to:                     substitute a reference to: