Document ID: chunk:federal_register_of_legislation:C2025C00014:section:448:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 448 (pt 2/3)
Character Range: 2077721–2080393

that time at or through a permanent establishment of the insurer in Australia;
 (g) income of the company covered by subsection (1A).
 (1A) Income of the company is covered by this subsection if:
 (a) it is income from the provision of services by the company to an entity under a scheme (within the meaning of the Income Tax Assessment Act 1997); and
 (b) the entity is an associate of the company; and
 (c) those services are received by another entity; and
 (d) the other entity satisfies either of these requirements:
 (i) the other entity was a Part X Australian resident at the time the income was derived, and the services were not received in connection with a business carried on by the other entity at that time at or through a permanent establishment of the other entity in a listed or unlisted country;
 (ii) the other entity was not a Part X Australian resident at the time the income was derived, and the services were received in connection with a business carried on by the other entity at that time at or through a permanent establishment of the other entity in Australia; and
 (e) the income would be tainted services income if:
 (i) this section did not include paragraph (1)(g) or this subsection; and
 (ii) the income were from the provision of those services by the company to the other entity; and
 (f) a reasonable person would conclude (having regard to all the circumstances) that the scheme was entered into or carried out for a purpose, other than an incidental purpose, of enabling entities satisfying the requirements of subparagraph (d)(i) or (ii) to receive those services.
 (2) The tainted services income of a company of a statutory accounting period does not include income from the sale of goods by the company.
 (3) Where:
 (a) a company provides services directly related to goods sold by the company; and
 (b) either of the following conditions is satisfied:
 (i) the company substantially altered the goods with the result that the market value of the goods was substantially enhanced;
 (ii) the company did not acquire the goods from another entity;
the tainted services income of the company does not include income from the provision of those services.
 (4) Where a company provides any of the following services:
 (a) drinks and meals;
 (b) accommodation in a hotel, motel, guest‑house or similar place;
 (c) the provision of, or of the use of facilities for, entertainment, recreation or instruction;
the tainted services income of the company does not include income from the provision of those services.
 (5) The tainted services income of a company of a statutory accounting period does not include the passive income of the