Document ID: chunk:federal_register_of_legislation:C2010C00576:clause:3_160afcd
Version: federal_register_of_legislation:C2010C00576
Segment Type: clause
Provision Reference: sch 3 cl 160AFCD
Character Range: 45448–47515

160AFCD  Foreign tax in respect of amounts that are non‑assessable non‑exempt income under section 23AI

 (1) If an attribution account payment made to a resident taxpayer by an attribution account entity in a year of income is, in whole or in part (the section 23AI non‑assessable part), not assessable income and not exempt income under section 23AI, these provisions have effect:
 (a) the section 23AI non‑assessable part is taken, for the purposes of paragraph 160AF(1)(a) but not (d), to be included in the assessable income of the taxpayer of the year of income;
 (b) the taxpayer is taken for the purposes of this Division to have paid, and to have been personally liable for, in respect of the section 23AI non‑assessable part, in the year of income, an amount of foreign tax calculated using the formula:

 (2) In this section:

AEP or adjusted exempt percentage means the percentage that would be the exempt percentage if the attribution account payment were reduced by any part of that payment that is non‑assessable non‑exempt income under section 23AJ.

AT or attributed tax means the amount of any attributed tax account debit arising for the attribution account entity in relation to the taxpayer on the making of the attribution account payment, to the extent that the amount of the debit does not exceed the multiple of the adjusted exempt percentage and the underlying tax.

DT or direct tax means any foreign tax that, disregarding this section and section 160AFC, the taxpayer is taken for the purposes of this Division to have paid, and to have been personally liable for, in respect of the attribution account payment.

EP or exempt percentage means the percentage of the attribution account payment represented by the section 23AI non‑assessable part.

UT or underlying tax means any foreign tax (other than CFC‑type foreign tax) that, disregarding this section, the taxpayer is taken, for the purposes of this Division, to have paid, and to have been personally liable for, under section 160AFC in respect of the attribution account payment.