Document ID: chunk:federal_register_of_legislation:C2010C00184:clause:1_1:p7
Version: federal_register_of_legislation:C2010C00184
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 7/8)
Character Range: 21709–24350

included in the notional assessable income of the CFC for the statutory accounting period; or
 (b) for a section 457 case—by the CFC; or
 (c) for a foreign company case or a foreign trust case—by the foreign company or foreign trust in respect of an amount included in its notional income (within the meaning of Part XI of the 1936 Act) of the notional accounting period.

Note: Section 770‑130 deems foreign income tax to have been paid in certain circumstances.

 (4) For the purposes of paragraphs (3)(a) and (b), the tax amount includes an amount that is taken to have been paid by the *CFC under subsection 393(4) of the 1936 Act (about tax paid on reinsurance premiums).

Association condition

 (5) If the entity is a company, it must have an *attribution percentage of 10% or more:
 (a) for a section 456 case—in relation to the *CFC at the end of the statutory accounting period; or
 (b) for a section 457 case—in relation to the CFC at the residence‑change time (within the meaning of section 457 of the 1936 Act); or
 (c) for a foreign company case—at the end of the notional accounting period.

Note: There is no association condition for a foreign trust case.

Calculation method condition for FIFs

 (6) For a foreign company case and a foreign trust case, the amount included under section 529 of the 1936 Act must have been determined by the application of the calculation method set out in Subdivision D of Division 18 of Part XI of that Act (the calculation method).

Amount of foreign income tax

 (7) The amount worked out under this subsection is:
 (a) for a section 456 case—the sum of all the tax amounts for the statutory accounting period multiplied by the company's *attribution percentage in relation to the *CFC at the time mentioned in paragraph (5)(a); or
 (b) for a section 457 case—the sum of all the tax amounts to the extent they are attributable to the amount included in the company's assessable income under section 457 of the 1936 Act; or
 (c) for a foreign company case or a foreign trust case—an amount worked out using the following formula:
where:

entity's share of calculated profit means the share of the calculated profit of the foreign company or foreign trust in respect of the notional accounting period to which the entity is entitled as determined under the calculation method.

FIF's calculated profit means the calculated profit of the foreign company or foreign trust in respect of the notional accounting period as determined under the calculation method.

Grossing‑up of attributed amount

 (8) For the purposes of this Act except this section and:
 (a) section 371 of the 1936 Act