Document ID: chunk:federal_register_of_legislation:C2005C00443:clause:3_5
Version: federal_register_of_legislation:C2005C00443
Segment Type: clause
Provision Reference: sch 3 cl 5
Character Range: 74256–75765

5  After subsection 448(1)
Insert:

 (1A) Income of the company is covered by this subsection if:
 (a) it is income from the provision of services by the company to an entity under a scheme (within the meaning of the Income Tax Assessment Act 1997); and
 (b) the entity is an associate of the company; and
 (c) those services are received by another entity; and
 (d) the other entity satisfies either of these requirements:
 (i) the other entity was a Part X Australian resident at the time the income was derived, and the services were not received in connection with a business carried on by the other entity at that time at or through a permanent establishment of the other entity in a listed or unlisted country;
 (ii) the other entity was not a Part X Australian resident at the time the income was derived, and the services were received in connection with a business carried on by the other entity at that time at or through a permanent establishment of the other entity in Australia; and
 (e) the income would be tainted services income if:
 (i) this section did not include paragraph (1)(g) or this subsection; and
 (ii) the income were from the provision of those services by the company to the other entity; and
 (f) a reasonable person would conclude (having regard to all the circumstances) that the scheme was entered into or carried out for a purpose, other than an incidental purpose, of enabling entities satisfying the requirements of subparagraph (d)(i) or (ii) to receive those services.