Income Tax Assessment Act 1936

Div 18 repealed by No 143 of 2007 , s 3 and Sch 1 item 64, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s 559A .

Div 18 substituted by No 51 of 1986.

Div 18 amended by No 108 of 1981, No 87 of 1978, No 117 and No 80 of 1975, No 126 of 1974, No 164 and No 51 of 1973, No 47 of 1972, No 85 and No 76 of 1967, No 50 of 1966, No 143 of 1965, No 110 of 1964 and No 94 of 1961.

S 160AFCF repealed by No 143 of 2007 , s 3 and Sch 1 item 64, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s 559A . S 160AFCF formerly read:

SECTION 160AFCF FOREIGN TAX IF TAXPAYER HAS INDIRECT INTEREST IN FOREIGN COMPANY  
160AFCF(1)
This section applies if:

(a) a taxpayer, being a company, had an interest in a foreign company ( ``the first tier foreign company'' ) during the whole or a part of the notional accounting period of the first tier foreign company ( ``the relevant period'' ) that ended in a year of income of the taxpayer ( ``the taxpayer's year of income'' ); and

(b) the first tier foreign company had an interest in another foreign company ( ``the second tier foreign company'' ) during the whole or a part of the notional accounting period of the second tier foreign company that ended in the relevant period.

160AFCF(2)
If:

(a) an amount is included in the notional income of the first tier foreign company of the relevant period under section 576 ; and

(b) an amount ( ``the section 529 amount'' ) is included in the assessable income of the taxpayer of a year of income under section 529 ;

(c) the section 529 amount was determined by the application of the calculation method set out in Subdivision D of Division 18 of Part XI in respect of the notional accounting period of the first tier foreign company; and

(d) at the end of the notional accounting period of the second tier foreign company, the first tier foreign company and the second tier foreign company were related to the taxpayer; and

(e) an amount ( ``the gross deductible amount'' ) is a notional deduction under that Subdivision from the second tier foreign company's notional income of that notional accounting period because the second tier foreign company paid an amount in respect of Australian tax or foreign tax;

subsection (3) has effect.

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History

S 160AFCF(2) amended by No 41 of 1998.

160AFCF(3)
The taxpayer is taken, for the purposes of this Division, to have paid and to have been personally liable for, in respect of the section 529 amount (in addition to any foreign tax that the taxpayer is taken to have paid, and been personally liable for, under section 160AFCE ), an amount of foreign tax worked out using the formula:

The gross deductible amount	x	Taxpayer's share of calculated profit of second tier foreign company
		Calculated profit of second tier foreign company

For the purposes of this subsection:

`` Taxpayer's share of calculated profit of second tier foreign company '' means so much of the taxpayer's share of the calculated profit of the first tier foreign company in respect of the relevant period as is attributable to the taxpayer's indirect interest in the second tier foreign company;

`` Calculated profit of first tier foreign company '' means the calculated profit of that foreign company in relation to the relevant period as determined by the application of the calculation method set out in Subdivision D of Division 18 of Part XI ;

`` Calculated profit of second tier foreign company '' means the calculated profit of the second tier foreign company in respect of the notional accounting period of that foreign company that ended in the relevant period as determined by the application of the calculation method set out in Subdivision D of Division 18 of Part XI .

S 160AFCF inserted by No 190 of 1992.