Taxation Laws Amendment Act (No. 4) 1994 (181 of 1994)

Schedule 3   AMENDMENTS RELATING TO SUPERANNUATION

Part 2   INCOME TAX ASSESSMENT ACT 1936

Division 12   Lump sum payments from certain non-resident superannuation funds

77   After subsection 160AF(5)

Insert:

"(6) If:

(a) a payment is made from a superannuation fund in respect of a taxpayer; and

(b) an amount (the 'assessable component') is included in the taxpayer's assessable income under section 27CAA in respect of the payment; and

(c) the taxpayer has paid foreign tax in respect of the assessable component for which the taxpayer was personally liable;

then, for the purposes of subsection (1), the amount of that foreign tax is taken to be the amount worked out using the formula:

(Actual foreign tax * Assessable component) / Gross amount of payment

where:

'Actual foreign tax' means the amount of the foreign tax actually paid by the taxpayer in respect of the payment referred to in paragraph (a);

'Assessable component' means the assessable component;

'Gross amount of payment' means the amount of the payment referred to in paragraph (a) that was due to be made before any deduction was made from that amount.".