OE 19BETA person’s payment of income tax on foreign income

1. A BETA person has a branch equivalent tax credit for an income year for an amount calculated using the formula—

   $(tax\; liability\; \times \; CFC\; or\; taxable\; income\; ÷\; taxable\; income)\; -\; foreign\; tax\; credits.$

   Where:

2. In the formula,—

3. tax liability is the person’s income tax liability for the income year:
4. CFC or taxable income is the lesser of the person’s—
   1. attributed CFC income derived during the income year; or
   2. taxable income for the income year:
5. taxable income is the person’s taxable income for the income year:
6. foreign tax credits is the foreign tax credits allowed for the income year under sections LK 1 to LK 7 (which relate to tax credits relating to attributed CFC income).

7. The branch equivalent tax credit in subsection (1) is referred to in table O9: person’s branch equivalent tax credits, row 2 (payment of income tax on foreign income).

8. The credit date is the day the person files the return of income for the tax year corresponding to the income year.

Compare

• 2004 No 35 ss MF 13(1), (2), MF 14

Notes

• Section OE 19 list of defined terms foreign tax: repealed, on 30 March 2017, by section 218(a) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
• Section OE 19 list of defined terms tax credit: inserted, on 30 March 2017, by section 218(b) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).