Document ID: chunk:federal_register_of_legislation:C2005A00064:clause:1_7
Version: federal_register_of_legislation:C2005A00064
Segment Type: clause
Provision Reference: sch 1 cl 7
Character Range: 7032–7781

7  After subsection 67‑25(1D)
Insert:

 (1DA) A *tax offset is not subject to the refundable tax offset rules if:
 (a) an entity is entitled to the tax offset under Division 207 because a *franked distribution is made, or *flows indirectly, to the entity; and
 (b) the entity is a foreign resident and carries on business in Australia at or through a permanent establishment of the entity in Australia, being a permanent establishment within the meaning of:
 (i) a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936) that relates to a foreign country and affects the entity; or
 (ii) subsection 6(1) of that Act, if there is no such agreement; and
 (c) the distribution is attributable to the permanent establishment.