Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128ae:p4
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128AE (pt 4/5)
Character Range: 1235688–1238192

another person, the following provisions have effect for the purposes of this Division:
 (a) subject to subsections (10) and (11), the amount transferred ceases to be tax exempt loan money or tax exempt gold of the person; and
 (b) the amount transferred does not become tax exempt loan money or tax exempt gold of the other person.
 (8) Where a person who is or has been an offshore banking unit transfers to another person an amount of money or gold that, in the opinion of the Commissioner, includes tax exempt loan money or tax exempt gold, so much of the amount transferred as the Commissioner considers was tax exempt loan money or tax exempt gold is deemed, for the purposes of this Division, to have been tax exempt loan money or tax exempt gold of the person.
 (9) Where a person who is or has been an offshore banking unit deals with an amount of tax exempt loan money or tax exempt gold of the person under the person's internal accounting arrangements in such a way that the amount becomes available for possible transfer to other persons (other than by way of payment in carrying on an OB activity, or what would be an OB activity if the person were an OBU, or repayment of an offshore borrowing or an offshore gold borrowing), the following provisions have effect for the purposes of this Division:
 (a) the person is, when the amount so becomes available, deemed to make a transfer of the amount to another person, other than by way of payment in carrying on an OB activity (or what would be an OB activity if the person were an OBU) or repayment of an offshore borrowing or an offshore gold borrowing;
 (b) any actual transfer of the amount by the person to another person shall be disregarded.
 (10) For the purposes of this Division, where a person who is or has been an offshore banking unit transfers tax exempt loan money to another person in exchange for an equivalent amount in a different currency:
 (a) the amount received in exchange shall be taken to be the same money as was transferred; and
 (b) the transfer shall be taken not to have occurred.
 (11) For the purposes of this Division, where a person who is or has been an offshore banking unit transfers tax exempt loan money or tax exempt gold to another person by way of a deposit for the purposes of temporary safe‑keeping pending the making of an offshore loan or repayment of an offshore borrowing or an offshore gold borrowing:
 (a) the amount held on deposit and upon being repaid shall be taken to be the same money