(1) This Subdivision applies only for the purposes of working out the assessable income of an entity (the foreign entity ) that:
(a) is a foreign resident; and
(b) is not a trust or partnership.
(2) Despite subsection (1), this Subdivision applies in relation to a partnership or trust, to the extent necessary to work out an amount included in the assessable income of the foreign entity.
Note 1: This Subdivision applies, for example, in working out the net income of a partnership or trust, to the extent necessary to work out the assessable income, attributable to that partnership or trust, of a partner or beneficiary who is a foreign resident.
Note 2: This Subdivision could operate in relation to an entity (if it
is a partnership or trust) and/or one or more partnerships or trusts
interposed between the entity and the foreign resident.