New International Tax Arrangements (Participation Exemption and Other Measures) Act 2004 (96 of 2004)

Schedule 2   Foreign branch income, non-portfolio dividends and listed countries

Part 3   Non-portfolio dividend exemption: consequential amendments

Income Tax Assessment Act 1936

38   Section 160AFCB

Repeal the section, substitute:

160AFCB Foreign tax in respect of amounts assessable under section 457

If:

(a) an amount (the section 457 amount ) is included in the assessable income of a taxpayer, being a company, of a year of income under section 457 as a result of a change of residence at a particular time (the residence-change time ) by a CFC; and

(b) at the residence-change time, the CFC was related to the taxpayer;

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 457 amount, in the year of income, an amount of foreign tax equal to the total foreign tax and Australian tax paid by the CFC that is attributable to the section 457 amount.