(1) Where at any time (in this section called the residence - change time ) a company that:
(a) is a CFC; and
(b) has an attributable taxpayer;
ceases to be resident in an unlisted country and becomes:
(c) a resident of a listed country; or
(d) a Part X Australian resident;
then the attributable taxpayer's assessable income of the year of income in which the residence - change time occurs includes the amount calculated under subsection (2).
(2) The amount is calculated using the formula:
where:
"Attribution percent" means the attributable taxpayer's attribution percentage, at the residence - change time, in relation to the CFC.
"Adjusted distributable profits" means:
(a) if paragraph (1)(c) applies--the amount that would be the CFC's distributable profits at the residence - change time if:
(i) the CFC's income were its adjusted tainted income (excluding any non - portfolio dividends) derived during the period beginning on the first day of the statutory accounting period in which the residence - change time occurred and ending immediately before the time at which the residence - change time occurs; and
(ii) the CFC's only other income were an amount that the CFC would have derived had it disposed of all of its tainted assets immediately before the residence - change time for a consideration equal to their market value; and
(iii) the CFC's only expenses were expenses related to income covered by subparagraphs (i) and (ii); or
(b) if paragraph (1)(d) applies--the amount that would be the CFC's distributable profits at the residence - change time if:
(i) the CFC's only income were its adjusted tainted income (excluding any non - portfolio dividends) derived during the period beginning on the first day of the statutory accounting period in which the residence - change time occurred and ending immediately before the time at which the residence - change time occurs; and
(ii) the CFC's only expenses were expenses related to income covered by subparagraph (i).
(3) If:
(a) at the residence - change time, regulations made for the purposes of section 320 come into effect; and
(b) a result of those regulations coming into effect is that the company:
(i) ceases to be a resident of an unlisted country; and
(ii) becomes a resident of a listed country;
at the residence - change time;
then no amount is to be included in the attributable taxpayer's assessable income under subsection (1) in relation to that change of residence.