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Edited version of private advice
Authorisation Number: 1051921785414
Date of advice: 12 November 2021
Ruling
Subject: Foreign income tax offset
Question
Are you entitled to a Foreign Income Tax Offset (FITO)?
Answer
Yes. Based on the information provided to the Commissioner you are able to claim a FITO in relation to the Country Y net investment tax paid in the Country Y. In order to qualify for a FITO the tax must be paid in Country Y prior to it being claimed in your Australian tax return.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are an Australian tax resident.
You are a citizen of Country Y.
You are a Country Y tax resident for Country Y tax purposes.
You sold shares in an Australian resident company.
You will also declare a capital gain in Country Y and pay income tax and net investment tax in Country Y in respect of the sale of the shares.
Relevant legislative provisions
Income Tax Assessment Act 1997 Division 770