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Edited version of your private ruling
Authorisation Number: 1012510300517
Ruling
Subject: Deductions
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling
Question
Are you entitled to a deduction for taxes paid during your employment in country A?
Answer
No
This ruling applies for the following periods:
Year ended 30 June 2012
The scheme commences on:
1 July 2011
Relevant facts and circumstances
You were employed in country A by a company for a number of months.
You paid tax on your income in country A.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 25-5(2)
Reasons for decision
Subsection 25-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997) states that a taxpayer cannot deduct:
(a) tax; or
(b) an amount withheld or payable; or
(c) expenditure for borrowing money (including payments of interest) to pay an amount covered by paragraph (a) or (b); or
(d) expenditure for a matter relating to the commission (or possible commission) of an offence against an Australian law or a foreign law; or
(e) a fee or commission for advice about the operation of a Commonwealth law relating to taxation, unless that advice is provided by a recognised tax adviser.
The taxes that you paid while employed in country A are all taxes. Therefore, they are not deductible under paragraph (a) of subsection 25-5 (2) of the ITAA 1997.