New Business Tax System (Thin Capitalisation) Act 2001 (162 of 2001)

Schedule 1   Thin capitalisation rules

Part 2   Consequential and other amendments

Income Tax Assessment Act 1936

5   Subsection 160AFD(9) (definition of foreign income deduction )

Omit all the words after "any deduction", substitute:

other than:

(a) a deduction under section 532 or 533; or

(b) a debt deduction (to the extent that it is not attributable to the taxpayer's overseas permanent establishment);

that, disregarding section 79D, is allowed or allowable from the assessable income of the taxpayer of that year of income, to the extent that the deduction relates to assessable foreign income of that class of any year of income.