Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 5/18)
Character Range: 7486333–7488932

dual inclusion income group in a country (see subsection (6)); and
 (b) an amount of income or profits of the entity (the on‑payment amount) is a payment received by the entity from another member of the dual inclusion income group at a time; and
 (c) it is reasonable to conclude that the payment was funded by an amount of income or profits of the other member (the funding income or profits); and
 (d) it is reasonable to conclude that the funding income or profits were:
 (i) if the country mentioned in paragraph (a) is Australia—*subject to Australian income tax; or
 (ii) if the country mentioned in paragraph (a) is a foreign country—*subject to foreign income tax in the foreign country; and
 (e) the funding income or profits were not *dual inclusion income under subsection (1) (disregarding subsection (5)) in the country.
 (4A) In determining whether paragraph (4)(d) is satisfied, have regard to any previous application of subsection (5).
 (5) For the purposes of subsection (1), the on‑payment amount is treated as if it were:
 (a) if the country mentioned in paragraph (4)(a) is Australia—*subject to Australian income tax in the income year in which the time mentioned in paragraph (4)(b) occurs; or
 (b) if the country mentioned in paragraph (4)(a) is a foreign country—*subject to foreign income tax in the foreign country in the *foreign tax period in which the time mentioned in paragraph (4)(b) occurs.
 (6) Two or more entities (the member entities) are members of a group (a dual inclusion income group) in a country for the purposes of this Division if in that country:
 (a) the same entity or entities are *liable entities in respect of the income or profits of each of the member entities; and
 (b) no other entity is a liable entity in respect of the income or profits of any of the member entities.
Note: For example, entities that are members of a consolidated group or MEC group.

When an entity is eligible to apply dual inclusion income
 (7) An entity is eligible to apply an amount of *dual inclusion income if the amount is income or profits of:
 (a) the entity; or
 (b) if paragraph (a) does not apply and the entity is a member of a dual inclusion income group in any country—an entity that is a member of the dual inclusion income group.
 (8) However, an entity is not eligible to apply the amount if it has already been applied by any entity by a previous application of a provision of this Division.

Interaction with other provisions
 (9) To avoid doubt, if a provision of this section has the effect that an amount is treated for the purposes of subsection