Taxation Determination
TD 2005/15A1 - Addendum
Income tax: does subsection 23AG(2) of the Income Tax Assessment Act 1936 apply where foreign earnings are exempt from tax in the foreign country for a reason listed in that subsection as well as a reason not listed?
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Addendum
This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Taxation Determination TD 2005/15 to note the decision in Tanddo and Commissioner of Taxation [2022] AATA 4143 which provides that positive action is usually required to come within the operation of a memorandum of understanding or a general agreement on development cooperation for the purpose of section 23AG(2).
TD 2005/15 is amended as follows:
Omit the preamble; substitute:
Relying on this Determination
This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953.
If this Determination applies to you, and you correctly rely on it, we will apply the law to you in the way set out in this Determination. That is, you will not pay any more tax or penalties or interest in respect of the matters covered by this Determination.
Insert table of contents:
| Table of Contents | Paragraph |
| Ruling | 1 |
| Date of effect | 1A |
| Appendix 1 – Explanation | 2 |
| Appendix 2 – Example | 9 |
| Example 1: Exempt income – foreign aid worker | 9 |
(a) Omit the page status 'FOI status: may be released'; substitute 'Status: legally binding'.
(b) Before the paragraph, insert the minor heading 'Ruling'.
(c) In footnote 1, omit 'TD 2004/D83'; substitute 'TD 2005/14 Income tax: does subsection 23AG(2) of the Income Tax Assessment Act 1936 apply where foreign earnings are exempt from tax in a foreign country for one or more of the reasons listed in that subsection and there is no additional reason for exempting that income?
(d) After the paragraph, insert new paragraph 1A (including the minor heading) and signature and date block:
Date of effect
1A. This Determination applies to years commencing both before and after its date of issue. However, it does not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of the Determination (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10 Public Rulings).
Commissioner of Taxation
11 May 2005
Omit the page status 'FOI status: may be released '; substitute 'Status: not legally binding '.
(a) Change the minor heading to a major heading. In the major heading, before Explanation, insert 'Appendix 1 – '.
(b) After the heading, insert preamble:
Omit the page status 'FOI status: may be released '; substitute 'Status: not legally binding '.
(a) Before paragraph 9 insert the major heading 'Appendix 2 – Example'.
(b) After the major heading, insert preamble:
(c) In the minor heading, after 'Example', insert '1: Exempt income – foreign aid worker'
(d) At the end of the first sentence, insert footnote 2:
Because the taxpayer is undertaking an activity in the other country which has been selected for implementation under the relevant MoU. Where it has not been so selected, the MoU does not apply to grant the exemption in the foreign country – refer to Tanddo and Commissioner of Taxation [2022] AATA 4143.
Omit the paragraph, including the heading and following signature and date block.
This Addendum applies before and after its date of issue.
Commissioner of Taxation
6 September 2023
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References
ATO references:
NO 1-XEHCZBO