Document ID: chunk:federal_register_of_legislation:C2010C00184:clause:1_4:p6
Version: federal_register_of_legislation:C2010C00184
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 6/6)
Character Range: 54751–56652

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).

 (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.

 (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