Document ID: chunk:federal_register_of_legislation:C2005C00443:clause:1_3:p3
Version: federal_register_of_legislation:C2005C00443
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 3/6)
Character Range: 26408–28983

those companies to another of those companies.

Note 2: If an asset (other than an asset mentioned in Note 1) is actually an active foreign business asset, or an asset included in the total assets, of a subsidiary foreign company, it is treated under this subsection as an active foreign business asset, or as an asset included in the total assets, of the top foreign company.

 (5) For the purposes of subsection (4), the provisions are:
 (a) section 768‑540 (active foreign business assets of a foreign company); and
 (b) section 768‑545 (assets included in the total assets of a foreign company).

 (6) If the holding company has made a choice under subsection (2), then for the purposes of sections 768‑510 and 768‑525, treat the *recognised consolidated accounts of the top foreign company and all of the subsidiary foreign companies as the *recognised company accounts of the top foreign company.

Types of assets of a foreign company

768‑540  Active foreign business assets of a foreign company

 (1) An asset is, at a particular time, an active foreign business asset of a company (the foreign company) that is a foreign resident if, at that time:
 (a) the asset is an *asset included in the total assets of the company; and
 (b) the asset satisfies any of these conditions:
 (i) the asset is used, or held ready for use, by the company in the course of carrying on a *business;
 (ii) the asset is goodwill;
 (iii) the asset is a *share; and
 (c) the asset is not a *CGT asset that has the *necessary connection with Australia, disregarding the operation of paragraph (b) of item 5 and paragraph (b) of item 6 of the table in section 136‑25; and
 (d) the asset is not covered by subsection (2); and
 (e) if the foreign company is an AFI subsidiary (within the meaning of Part X of the Income Tax Assessment Act 1936) whose sole or principal business is financial intermediary business—the asset is not covered under subsection (4).

 (2) An asset is covered by this subsection if it is:
 (a) a financial instrument (other than a *share or a trade debt); or
 (b) either:
 (i) an eligible finance share (within the meaning of Part X of the Income Tax Assessment Act 1936); or
 (ii) a widely distributed finance share (within the meaning of that Part); or
 (c) an interest in a trust or *partnership; or
 (d) a *life insurance policy; or
 (e) a right or option in respect of:
 (i) a financial instrument; or
 (ii) an interest in a company, trust or partnership; or
 (iii) a life insurance policy; or
 (f) cash or cash equivalent; or
 (g) an asset whose main use in the