TAXATION (INTEREST ON OVERPAYMENTS AND EARLY PAYMENTS) ACT 1983

PART III - INTEREST ON OVERPAYMENTS RESULTING FROM DECISIONS TO WHICH THIS ACT APPLIES  

SECTION 11   11   LIMIT ON OVERPAYMENT OF INTEREST WHERE CORRELATIVE RELIEF IN RESPECT OF FOREIGN INCOME TAX  
If:


(a) apart from this section, interest is payable in respect of the whole or part (which whole or part is the overpayment ) of an amount of relevant tax; and


(b) the decision to which this Act applies mentioned in subsection 9(1) was made wholly or partly to provide correlative relief, for juridical double taxation or economic double taxation, in respect of the taxing of an amount under a law of a foreign country; and


(c) as a result, the whole or part (which whole or part is the correlative relief amount ) of the overpayment is attributable to the provision of the correlative relief; and


(d) the interest on the overpayment, to the extent that it is attributable to the correlative relief amount, exceeds the lesser of:


(i) the amount of the late payment interest paid in respect of the amount taxed under the law of the foreign country, expressed in Australian currency at the exchange rate applicable at the time when the taxing of the amount under the law of the foreign country takes place;
Note:

Such interest must have been paid or subsection 9(1A) would prevent the correlative relief amount from attracting interest under this Part.


(ii) the correlative relief amount;

the interest otherwise payable on the overpayment is reduced by the amount of the excess in paragraph (d).





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