New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (90 of 2002)

Schedule 10   Consolidation: consequential provisions for international tax

Income Tax Assessment Act 1936

11   Transitional provision for section 160AF

(1) This item applies if:

(a) because of item 5, 6 or 7, old section 160AFE applies to a taxpayer as if a period were an income year (the notional income year ); and

(b) the taxpayer has an initial excess credit (within the meaning of old section 160AFE) in relation to the notional income year; and

(c) the taxpayer transfers all or part (the extent of the transfer being the transfer amount ) of that initial excess credit under old section 160AFE for utilisation by another company in the notional income year.

(2) Section 160AF of the Income Tax Assessment Act 1936 applies to the taxpayer for the year of income in which the notional income year ends as if the amount of foreign tax paid by the taxpayer mentioned in paragraph 160AF(1)(b) of that Act were reduced by the transfer amount.

(3) This item operates separately in relation to each class of foreign income identified in subsection 160AF(7) of the Income Tax Assessment Act 1936, as if the taxpayer's foreign income of that class for a year of income were the whole of the taxpayer's foreign income for that year.