The Australian Taxation Office has issued Taxation Ruling (TR) 2017/3 on the meaning of 'at the time the distribution is made' when applying the participation test in Subdivision 768-A to work out whether an equity distribution received by an Australian corporate tax entity from a foreign company is not assessable and not exempt (NANE) income. In general, NANE income is exempt provided that the Australia entity receiving the distribution has at least a 10% participation interest in the foreig…