Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 770.5

  (1)   The object of this Division is to relieve double taxation where:

  (a)   you have paid foreign income tax on amounts included in your assessable income; and

  (b)   you would, apart from this Division, pay Australian income tax on the same amounts.

  (2)   To achieve this object, this Division gives you a tax offset to reduce or eliminate Australian income tax otherwise payable on those amounts.

Note 1:   This Division applies in relation to Medicare levy and Medicare levy (fringe benefits) surcharge in the same way as it applies to Australian income tax. See section   90 - 1 in Schedule   1 to the Taxation Administration Act 1953 .

Note 2:   The tax offset under this Division can be applied against your Medicare levy and Medicare levy (fringe benefits) surcharge liability for the year, if an amount of it remains after you apply it against your basic income tax liability. See item   22 of the table in subsection   63 - 10(1).

Table of sections

Basic entitlement rule for foreign income tax offset

770 - 10   Entitlement to foreign income tax offset

770 - 15   Meaning of foreign income tax , credit absorption tax and unitary tax