Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128ae:p3
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128AE (pt 3/5)
Character Range: 1233411–1235923

of the Criminal Code in relation to a taxation law (within the meaning of the Taxation Administration Act 1953); or
 (b) incurs a tax liability, within the meaning of that Act, by way of a penalty equal to 90% of an amount;
the Minister may, by notifiable instrument, declare that the person is no longer an offshore banking unit for the purposes of this Division.
 (2B) If the Minister makes such a declaration in respect of a company that is an offshore banking unit only because of paragraph (2)(ba), the offshore banking unit mentioned in that paragraph, and in any previous application of that paragraph that was necessary for it to apply to the company, is no longer an offshore banking unit from the time when the declaration comes into force.
 (2C) If a person who is an offshore banking unit ceases to be a person of a kind mentioned in any of paragraphs (2)(a), (b), (ba) and (c), the Minister must, by notifiable instrument, declare that the person is no longer an offshore banking unit for the purposes of this Division.
 (2D) Except as mentioned in subsection (2A), (2B) or (2C), a person does not cease to be an offshore banking unit for the purposes of this Division.
 (3) A declaration under subsection (2), (2A) or (2C) shall not come into force before the day on which the declaration is registered on the Federal Register of Legislation under the Legislation Act 2003.
 (4) Where:
 (a) a person who is an offshore banking unit makes an offshore borrowing or offshore gold borrowing; and
 (b) the lender would, but for section 128GB, be liable to pay withholding tax on income consisting of interest on the offshore borrowing or offshore gold borrowing;
then, for the purposes of this Division, the amount borrowed is tax exempt loan money or tax exempt gold of the person.
 (5) Where:
 (a) a person who is or has been an offshore banking unit makes a loan of tax exempt loan money or tax exempt gold where the loan is an OB activity or would be if the person were an OBU; and
 (b) the loan is repaid;
the amount repaid is, for the purposes of this Division, deemed to be tax exempt loan money or tax exempt gold of the person.
 (7) Where a person who is or has been an offshore banking unit transfers an amount of tax exempt loan money or tax exempt gold to another person, the following provisions have effect for the purposes of this Division:
 (a) subject to subsections (10) and (11), the amount transferred ceases to be tax exempt loan money or tax exempt gold of the person; and
 (b) the