INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 18B - Credits in respect of overseas tax paid on certain shipping income  

SECTION 160AGB   CREDITS IN RESPECT OF OVERSEAS TAX PAID ON CERTAIN SHIPPING INCOME  

160AGB(1)   [Tax credit]  

Subject to subsection (2), where:

(a) an amount of income is derived by a taxpayer from the use by the taxpayer of a trading ship;

(b) paragraph 23(r) does not apply but would, but for subsection 57AM(30) , apply to that amount or a part of that amount (which amount or part is in this section referred to as the ``eligible amount'' ); and

(c) an amount of income tax (in this section referred to as the ``overseas tax'' ) for which the taxpayer was personally liable has been paid in respect of the eligible amount, either directly or by deduction, under the income tax laws of the country from sources in which the eligible amount was derived;

the taxpayer is, subject to this Act, entitled to a credit of tax of an amount determined in accordance with subsection (3).

160AGB(2)   [No double credit]  

A taxpayer is not entitled to a credit of tax under this section in respect of tax paid in respect of an amount of income if, under a provision of this Act other than this section, the taxpayer is entitled to a credit in respect of tax paid in respect of that income.

160AGB(3)   [Amount of credit]  

The amount of the credit is:

(a) the amount of the overseas tax, as reduced by the amount of any refund of, or credit in respect of, the overseas tax; or

(b) the amount of the Australian tax payable in respect of the eligible amount;

whichever is the less.

160AGB(4)   [Australian tax re eligible amount]  

For the purposes of subsection (3), the Australian tax in respect of the eligible amount is the amount of Australian tax that would be ascertained for the purposes of section 160AF if that section applied and the eligible amount were the taxpayer's foreign income for the purposes of that section.

160AGB(5)   [Meaning of ``trading ship'']  

In this section ``trading ship'' has the same meaning as in section 57AM .

160AGB(6)   [``Amount of income'' under subsec (1)(a)]  

For the purposes of this section, the reference in paragraph (1)(a) to an amount of income derived by a taxpayer from the use of a trading ship shall be taken to include a reference to income derived by the taxpayer from the granting of a lease of the trading ship, from the letting of the trading ship on hire otherwise than under a hire-purchase agreement or from the granting of rights to use the trading ship.