Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 770.230

             (1)  This section affects the amount of your tax offset under section 770-70 of the Income Tax Assessment Act 1997 (the 1997 Act ).

Note:          That section determines how much tax offset you can claim for foreign income tax you have paid.

             (2)  Your tax offset for an income year (the current year ) is increased in accordance with this section if:

                     (a)  the amount of your tax offset worked out under section 770-70 of the 1997 Act falls short of your offset limit under section 770-75 of that Act; and

                     (b)  you have pre-commencement excess foreign income tax (see section 770-220) from an earlier year of income that is one of the most recent 5 income years ending before the current year.

             (3)  Increase your tax offset for the current year by adding your pre-commencement excess foreign income tax covered by paragraph (2)(b) to the amount of your tax offset worked out under section 770-70 of the 1997 Act .

             (4)  Only increase the offset to the extent of the shortfall worked out under paragraph (2)(a).

             (5)  You no longer have the pre-commencement excess foreign income tax to the extent that it has been used to increase your offset.

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