Taxation Ruling

TR 2007/4W

Income tax: entitlement to foreign tax credits under Division 18 of Part III of the Income Tax Assessment Act 1936 when foreign income is included in the net income of a trust estate

• Please note that the PDF version is the authorised version of this withdrawal notice.
  This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Notice of Withdrawal

Taxation Ruling TR 2007/4 is withdrawn with effect from today.

1. Taxation Ruling TR 2007/4 addresses:

•

the entitlement to claim a foreign tax credit or apply an excess foreign tax credit from an earlier income year under Division 18 of Part III of the Income Tax Assessment Act 1936 (ITAA 1936) of a resident beneficiary whose trust income includes foreign income; and

•

the circumstances under which the trustee of a trust estate is entitled to claim a foreign tax credit under Division 18 of Part III of the ITAA 1936 or apply an excess foreign tax credit from an earlier income year.

2. The Foreign Tax Credit System contained in Division 18 of Part III of the ITAA 1936 was repealed by Tax Laws Amendment (2007 Measures No. 4) Act 2007, with effect from 24 September 2007, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after 1 July 2008. The new Foreign Income Tax Offset system contained in Division 770 of the Income Tax Assessment Act 1997 applies from 1 July 2008.

3. Guidance on the new Foreign Income Tax Offset system is contained in publications on international tax, available on the ATO website at www.ato.gov.au. See, for example, the Guide to foreign income tax offset rules 2009-10 NAT 72923.

4. Accordingly, TR 2007/4 is no longer current and is therefore withdrawn.

Commissioner of Taxation
13 June 2012

Previously issued as TR 2007/D3

References

ATO references:
NO 1-2GTFICF

Related Rulings/Determinations:

IT 2527
TD 92/159
TR 2006/10

Subject References:
beneficiary
deemed liability
excess foreign tax credit
foreign income
foreign tax
foreign tax credit
grossing up
presently entitled
trust estate
trust income
trust loss
trustee

Legislative References:
ITAA 1936 6AB(1)
ITAA 1936 6AB(2)
ITAA 1936 6AB(3)
ITAA 1936 6AB(3)(a)(ii)
ITAA 1936 6AB(3)(a)(iv)
ITAA 1936 6AB(4)
ITAA 1936 6AC
ITAA 1936 6AC(1)
ITAA 1936 6B
ITAA 1936 6B(1)
ITAA 1936 6B(1A)
ITAA 1936 6B(2)
ITAA 1936 6B(2A)
ITAA 1936 6B(3)
ITAA 1936 Pt III Div 6
ITAA 1936 95
ITAA 1936 95(1)
ITAA 1936 95A(2)
ITAA 1936 96
ITAA 1936 96B
ITAA 1936 96C
ITAA 1936 97
ITAA 1936 97(1)
ITAA 1936 98
ITAA 1936 98(1)
ITAA 1936 98(2)
ITAA 1936 99
ITAA 1936 99A
ITAA 1936 100
ITAA 1936 100(2)
ITAA 1936 Pt III Div 6AA
ITAA 1936 Pt III Div 6AAA
ITAA 1936 Pt III Div 6B
ITAA 1936 Pt III Div 6C
ITAA 1936 159H
ITAA 1936 159N
ITAA 1936 Pt III Div 18
ITAA 1936 160AF(1)
ITAA 1936 160AF(1)(a)(i)
ITAA 1936 160AF(1)(a)(ii)
ITAA 1936 160AF(1)(b)
ITAA 1936 160AF(1)(c)
ITAA 1936 160AF(1)(d)
ITAA 1936 160AF(1)(e)
ITAA 1936 160AF(7)
ITAA 1936 160AFD
ITAA 1936 160AFE
ITAA 1936 160AFE(2)
ITAA 1936 251S(1)(c)
ITAA 1936 Pt XI
ITAA 1936 Sch 2F
ITAA 1997 36-15
TAA 1953

Case References:
DFC of T v. Balnaves
(1998) 98 ATC 5123
40 ATR 431

Other References:
Tax Laws Amendment (2007 Measures No. 4) Bill 2007