16Calculation of rebates under Taxation Code

16 Calculation of rebates under Taxation Code

(1) This section applies where, under Article 4, 9, 10 or 11 of the Taxation Code, a taxpayer is entitled to a rebate against income tax of 50% of the gross tax payable in Australia on particular profits, or particular income, derived by the taxpayer in a year of income. (2) In determining that rebate, the gross tax payable in Australia on those profits or that income is calculated using the formula:

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where:

Notional Australian tax means the amount of income tax that would be assessed under the Income Tax Assessment Act 1936 in respect of the taxpayer’s taxable income of the year of income if:

(a) the taxpayer was not entitled to any rebate of income tax or credit against the taxpayer’s liability for income tax; and

(b) the taxpayer was not liable to pay additional tax under Division 7 of Part III of that Act.

Taxable income means the number of whole dollars in the taxpayer’s taxable income of the year of income.

Rebatable amount means so much of the taxpayer’s taxable income of the year of income as is attributable to those profits or to that income, as the case may be.

(3) A reference in this section to income tax is a reference to income tax imposed as such by any Act.