(a) an amount of interest is taken under section 160ZZZA to be paid to, and derived by, a foreign bank by an Australian branch of the bank; and
(b) apart from this section, section 128B of this Act, and Subdivision 12-F in Schedule 1 to the Taxation Administration Act 1953 , would apply to an amount (the taxable amount ) that comprises the whole or a part of the amount so taken to be paid;
the following subsections have effect.
(2) Section 128B of this Act, and Subdivision 12-F in Schedule 1 to the Taxation Administration Act 1953 , apply only to the amount worked out using the formula:
(3) An amount to which section 128B applies because of subsection (2) of this section is taken, for the purposes of section 128C, to be income that was derived by the bank when the amount of interest referred to in paragraph (1)(a) is taken to have been paid to the bank.