Tax Laws Amendment (2007 Measures No. 4) Act 2007 (143 of 2007)

Schedule 1   New foreign income tax offset rules

Part 4   Consequential and other amendments

Income Tax Assessment Act 1936

57   After subsection 121EG(3)

Insert:

Only eligible fraction of foreign income tax is taken to be paid

(3A) Subject to section 121EH, this Act applies to an OBU as if only the eligible fraction of each amount of foreign income tax (within the meaning of the Income Tax Assessment Act 1997) the OBU paid in respect of an amount of assessable OB income had been paid in respect of that income.

Note: The heading to section 121EG is replaced by the heading " Reduction of assessable OB income, allowable OB deductions and foreign income tax paid ".