Document ID: chunk:federal_register_of_legislation:C2010A00114:clause:1_23ak:p1
Version: federal_register_of_legislation:C2010A00114
Segment Type: clause
Provision Reference: sch 1 cl 23AK (pt 1/3)
Character Range: 4119–6813

23AK  Amounts paid out of attributed foreign investment fund income not assessable

When this section applies
 (1) This section applies if:
 (a) either:
 (i) a FIF attribution account payment of a kind referred to in former paragraph 603(1)(a), (b), (c), (d), (f), (g) or (h) is made to a taxpayer (other than a partnership or taxpayer in the capacity of trustee of a trust); or
 (ii) a FIF attribution account payment of a kind referred to in former paragraph 603(1)(e) is made to a taxpayer; and
 (b) on the making of the payment, a post FIF abolition debit arises, for the FIF attribution account entity making the payment, in relation to the taxpayer.

Post FIF abolition debit arises
 (2) A post FIF abolition debit arises for a FIF attribution account entity (the eligible entity) in relation to a taxpayer if:
 (a) the eligible entity makes a FIF attribution account payment to the taxpayer or to a FIF attribution account entity; and
 (b) immediately before the eligible entity makes the FIF attribution account payment, there is a post FIF abolition surplus for the eligible entity in relation to the taxpayer.

Amount of post FIF abolition debit
 (3) The amount of the post FIF abolition debit is the lesser of:
 (a) the post FIF abolition surplus; and
 (b) whichever of the following is applicable:
 (i) if the attribution account payment is made to the taxpayer—the FIF attribution account payment;
 (ii) in any other case—the taxpayer's FIF attribution account percentage (for the FIF attribution account entity to which the payment is made) of the FIF attribution account payment;
  reduced by any attribution debit that arises under section 372 for the entity in relation to the taxpayer as a result of the making of the payment.

When the post FIF abolition debit arises
 (4) The post FIF abolition debit arises when the FIF attribution account payment is made.

When a post FIF abolition surplus exists
 (5) A post FIF abolition surplus for a FIF attribution account entity in relation to a taxpayer exists at a particular time (the relevant time) if the sum of:
 (a) the entity's total FIF attribution credits (within the meaning of former section 605) that arose before the commencement of Schedule 1 to the Tax Laws Amendment (Foreign Source Income Deferral) Act (No. 1) 2010; and
 (b) the entity's total post FIF abolition credits arising before the relevant time in relation to the taxpayer;
exceeds the sum of:
 (c) the entity's total FIF attribution debits (within the meaning of former section 606) that arose before that commencement in relation to the taxpayer; and
 (d) the entity's total post FIF abolition debits arising before the relevant time in relation to the