Document ID: chunk:federal_register_of_legislation:C2005C00443:clause:1_3:p4
Version: federal_register_of_legislation:C2005C00443
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 4/6)
Character Range: 28766–31448

or option in respect of:
 (i) a financial instrument; or
 (ii) an interest in a company, trust or partnership; or
 (iii) a life insurance policy; or
 (f) cash or cash equivalent; or
 (g) an asset whose main use in the course of carrying on the *business mentioned in subparagraph (1)(b)(i) is to *derive interest, an *annuity, rent, *royalties or foreign exchange gains unless:
 (i) the asset is an intangible asset and has been substantially developed, altered or improved by the foreign company so that its *market value has been substantially enhanced; or
 (ii) its main use for deriving rent was only temporary.

 (3) If, at the time mentioned in subsection (1), the foreign company is an AFI subsidiary (within the meaning of Part X of the Income Tax Assessment Act 1936) whose sole or principal business is financial intermediary business (within the meaning of that Part), subsection (2) operates as if:
 (a) paragraphs (2)(a) and (f) were omitted; and
 (b) paragraph (2)(g) did not contain a reference to interest, an *annuity or foreign exchange gains; and
 (c) subparagraph (2)(e)(i) were omitted and the following subparagraph were substituted:
 (i) a financial instrument, other than an asset mentioned in paragraph 450(1)(b) of the Income Tax Assessment Act 1936; or

 (4) The asset is covered under this subsection if:
 (a) all of these conditions are satisfied:
 (i) the asset is an asset mentioned in subparagraph 450(4)(b)(i) or (ii) of the Income Tax Assessment Act 1936;
 (ii) the asset was acquired from another entity;
 (iii) either of the conditions mentioned in subparagraph 450(6)(c)(i) and (ii) of the Income Tax Assessment Act 1936 were satisfied in relation to the other entity at the time of the acquisition; or
 (b) both of these conditions are satisfied:
 (i) the asset relates to a debt to which factoring income (within the meaning of Part X of the Income Tax Assessment Act 1936) of the foreign company relates;
 (ii) the condition in paragraph 450(8)(b) of the Income Tax Assessment Act 1936 is satisfied in relation to the debt.

768‑545  Assets included in the total assets of a foreign company

 (1) At a particular time, an asset is an asset included in the total assets of a company (the foreign company) that is a foreign resident if:
 (a) the asset is a *CGT asset at that time; and
 (b) the foreign company owns the asset at that time; and
 (c) if at that time the foreign company is not an AFI subsidiary (within the meaning of Part X of the Income Tax Assessment Act 1936) whose sole or principal business is financial intermediary business (within the meaning of that Part)—the asset is not a foreign company derivative asset covered by