Document ID: chunk:federal_register_of_legislation:C2025C00014:section:447:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 447 (pt 1/4)
Character Range: 2066514–2069110

447  Tainted sales income
 (1) Subject to this Division, for the purposes of this Part, the following amounts are tainted sales income of a company of a statutory accounting period:
 (a) income from the sale of goods by the company where all of the following conditions are satisfied:
 (i) the goods were sold to the company by another entity;
 (ii) either of the following sub‑subparagraphs applies at the time of the sale of the goods to the company:
 (A) the seller of the goods to the company was an associate of the company and a Part X Australian resident;
 (B) the goods were sold to the company by an associate of the company who was not a Part X Australian resident, in the course of a business carried on by the associate at or through a permanent establishment of the associate in Australia;
 (iii) if the goods were altered by the company—the income does not pass the substantial alteration test set out in subsection (4);
 (b) income from the sale of goods by the company where all of the following conditions are satisfied:
 (i) the goods were sold to the company by another entity;
 (ii) either of the following sub‑subparagraphs applies at the time of the purchase of the goods from the company:
 (A) the purchaser of the goods from the company was an associate of the company and a Part X Australian resident;
 (B) the purchaser of the goods from the company was an associate of the company who was not a Part X Australian resident and the purchase was made in the course of a business carried on by the purchaser at or through a permanent establishment of the purchaser in Australia;
 (iii) if the goods were altered by the company—the income does not pass the substantial alteration test set out in subsection (4);
 (c) income from the sale of goods (in this paragraph called the manufactured goods) by the company where all of the following conditions are satisfied:
 (i) the manufactured goods were manufactured by the company;
 (ii) any of the raw materials or goods from which the manufactured goods were manufactured were sold to the company by another entity;
 (iii) either of the following sub‑subparagraphs applies at the time of the sale to the company of the raw materials or goods from which the manufactured goods were manufactured:
 (A) the entity who sold to the company the raw materials or goods from which the manufactured goods were manufactured was an associate of the company and a Part X Australian resident;
 (B) the raw materials or goods from which the manufactured goods were manufactured were sold to the company by an associate of the company who was