S 770-220 repealed by
No 143 of 2007
, s 3 and Sch 1 item 227, effective 30 June 2014. S 770-220 formerly read:
SECTION 770-220 Converting excess foreign tax credits into pre-commencement excess foreign income tax
770-220(1)
You have pre-commencement excess foreign income tax from an income year if:
(a)
you have excess foreign tax credits in relation to a class of foreign income from an earlier income year under former section
160AFE
of the
Income Tax Assessment Act 1936
(the
1936 Act
); and
(b)
the earlier income year is one of the most recent 5 income years ending before the first income year starting on or after the first 1 July that occurs after the day on which the
Tax Laws Amendment (2007 Measures No. 4) Act 2007
receives the Royal Assent; and
(c)
the credits have not already been applied under former section
160AFE
of the 1936 Act.
Note:
For the classes of income, see former subsections
160AF(7)
and
160AFE(5)
of the 1936 Act.
Former section
160AFE
of the 1936 Act determined whether an entity had excess foreign tax credits for an income year and whether it could use them to increase the foreign tax credit amount in a later income year. Under the former foreign tax credit system, the excess credits were worked out and, where applicable, applied to increase the foreign tax credit amount in relation to each of the classes of income listed in former subsection
160AF(7)
.
770-220(2)
The amount of your pre-commencement excess foreign income tax from an income year is the sum of the amounts set out in the table in subsection (3) for that year.
770-220(3)
Column 2 of the following table specifies the class of income to which the excess foreign tax credits covered by subsection (1) relate. Column 3 sets the amount of pre-commencement excess foreign income tax from that income year generated by those excess foreign tax credits.
Conversion of excess foreign tax credits into pre-commencement excess foreign income tax for an income year
|
Item
|
Excess foreign tax credits covered by subsection (1) relating to this class of income referred to in former subsection 160AF(7) of the 1936 Act
|
Pre-commencement excess foreign income tax generated
|
1 |
Passive income |
The amount of those excess foreign tax credits |
2 |
Offshore banking income |
The amount of those excess foreign tax credits multiplied by the eligible fraction (within the meaning of section 121EG of the 1936 Act) |
3 |
An amount included in assessable income under section 305-70 of the 1997 Act (which is about the assessability of lump sums received from foreign superannuation funds) |
The amount of those excess foreign tax credits |
4 |
Other income |
(a) For a company
-
the amount of those excess foreign tax credits, as reduced under section 770-225; or
(b) For an entity other than a company
-
the amount of those excess foreign tax credits |
Note:
Section
121EG
of the 1936 Act applies the eligible fraction to assessable OB income, allowable OB deductions and foreign income tax paid on assessable OB income.
S 770-220 inserted by
No 143 of 2007
, s 3 and Sch 1 item 5, 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 Div
770
heading.