Taxation (International and Other Provisions) Act 2010 section 447

Partnerships and other transparent entities

Section 447 explains how the qualifying infrastructure company rules apply where a company holds its infrastructure assets and activities through a partnership or other transparent entity, rather than directly.

• Where a company is a member of a partnership, its partnership interest shown on its balance sheet can count as deriving value from qualifying infrastructure activities, just as if the underlying assets were held directly by the company.
• Assets recognised on the partnership's balance sheet are treated as if they appeared on the company's own balance sheet for the purposes of the qualifying infrastructure activity test, provided the company has a significant interest in the partnership.
• Obligations of the partnership (such as debt obligations relevant to the third-party interest exemption) are treated as if they were obligations of the qualifying infrastructure company itself.
• These rules also extend to transparent entities that are not partnerships, including collective investment vehicles that are transparent for income tax purposes.