Document ID: chunk:federal_register_of_legislation:C2025C00014:section:102aam:p5
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 102AAM (pt 5/8)
Character Range: 746068–748656

subsection (10).
FITO (Foreign income tax offset) means so much of any tax offset under Division 770 of the Income Tax Assessment Act 1997 to which the trustee of the first trust would be entitled, in respect of the taxpayer's portion of the distributed amount of the non‑resident trust's year of income, if the taxpayer's portion of the distributed amount of the non‑resident trust's income were an amount in respect of which the trustee were liable to be assessed and to pay tax under section 99A.
taxpayer's portion of the distributed amount means the taxpayer's portion of the distributed amount of the non‑resident trust's year of income.
 (5) Interest payable by a taxpayer under this section is to be calculated:
 (a) in respect of the period commencing at whichever of the following times is the latest:
 (i) the beginning of the first year of income of the taxpayer that begins after the end of the non‑resident trust's year of income;
 (ii) the beginning of the year of income of the taxpayer commencing on 1 July 1990;
 (iii) if the taxpayer is a natural person (other than a natural person in the capacity of a trustee) who first commenced to be a resident of Australia at a time (in this subparagraph called the first residence time) on or after 1 July 1990—the beginning of the year of income of the taxpayer next following the year of income of the taxpayer in which the first residence time occurred;
  and ending at the end of the assessment year of income; and
 (b) at the base interest rate.
 (6) Where the assessable income of a taxpayer of a year of income includes one or more of the following amounts in relation to one or more non‑resident years of income of a particular trust estate (which amounts are in this subsection called the principal amounts):
 (a) the distributed amount of the non‑resident trust's year of income;
 (b) the taxpayer's portion of the distributed amount of the non‑resident trust's year of income;
the aggregate of the interest payable by the taxpayer in respect of the principal amounts is not to exceed the difference between:
 (c) the aggregate of the principal amounts; and
 (d) so much of the tax payable in respect of the year of income as is attributable to the aggregate of the principal amounts (ignoring any tax offset under Part 3‑6 of the Income Tax Assessment Act 1997).
 (7) For the purposes of this section, the extent to which an amount (in this subsection called the section 99B amount) included in the assessable income of a taxpayer of a year of income under section 99B in relation to a trust estate is attributable to