Document ID: chunk:federal_register_of_legislation:C2025C00014:section:324:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 324 (pt 1/2)
Character Range: 1864598–1867094

324  When income or profits subject to tax in a listed country
 (1) Subject to this section, for the purposes of this Part, a particular item of income or profits derived by an entity is taken to be subject to tax in a listed country in a particular tax accounting period if, and only if, foreign tax (other than a withholding‑type tax) is payable under a tax law of the listed country in respect of the item because the item is included in the tax base of that law for the tax accounting period.
 (2) If:
 (a) apart from this subsection and subsections (3) and (4), a particular item of income or profits derived by an entity is not subject to tax in a listed country in a particular tax accounting period; and
 (b) apart from a feature of a kind specified in the regulations, the item would have been subject to tax in the listed country in the tax accounting period;
the regulations may provide that the item is to be treated, for the purposes of this Part or one or more specified provisions of this Part, as if it were subject to tax in the listed country in the tax accounting period.
 (3) Where:
 (a) an entity becomes a resident of a particular listed country (in this section called the current listed country) at a particular time (in this section called the residence‑change time); and
 (b) the entity owns an asset at the residence‑change time; and
 (c) the entity disposes of the asset while a resident of the current listed country;
then, for the purposes of this Part:
 (d) if, apart from this paragraph, the only part of a capital gain on the disposal of the asset that is subject to tax in the listed country is the part that relates to the period after the residence‑change time—the whole of the capital gain, whether it relates to the period before or after the residence‑change time, is, subject to subsection (4), taken to be subject to tax in the current listed country; and
 (e) subsection (4) applies.
 (4) Where:
 (a) a capital gain on the disposal of the asset would, apart from this subsection and whether or not paragraph (3)(d) applies, be subject to tax in the current listed country; and
 (b) at a time or times when it owned the asset before the residence‑change time (but disregarding any time or times before a change of residence from an unlisted country to a listed country), the entity was a resident of one or more listed countries (each of which is in this subsection called a  previous listed country); and
 (c) if the entity had disposed of the asset when