Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 832-235 Extended operation of this Subdivision in relation to concessional foreign taxes 832-235(1)
This section applies in working out, for the purposes of this Subdivision, whether an amount is *subject to foreign income tax.
832-235(2)
An amount of income or profits of an entity is treated as if it were not *subject to foreign income tax if:
(a) apart from this section, the amount would be *subject to foreign income tax; and
(b) the rate of *foreign income tax (except a tax covered by subsection 832-130(7) ) (the lower rate ) on the amount under the law of the relevant foreign country is lower than the rate (the ordinary rate ) that would ordinarily be imposed on interest income derived by an entity of that kind in the foreign country.
Amount of a deduction/non-inclusion mismatch
832-235(3)
However, for the purposes of working out the amount of a *deduction/non-inclusion mismatch that is affected by this section, the amount of a payment that is treated by this section as not being *subject to foreign income tax is to be discounted by multiplying it by the following fraction:
| Lower rate | |
| Ordinary rate |
where:
lower rate means the lower rate mentioned in paragraph (2)(b).
ordinary rate means the ordinary rate mentioned in paragraph (2)(b).
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