Australia Publishes Final Taxation Determination on Including Capital Gains when Calculating Foreign Income Tax Offset Limit

The Australian Taxation Office (ATO) has announced the publication of Taxation Determination (TD) 2020/7 Income tax: can capital gains be included under subparagraph 770-75(4)(a)(ii) of the Income Tax Assessment Act 1997 in calculating the foreign income tax offset limit?

TD 2020/7 is in response to some taxpayers incorrectly including foreign capital gains where no foreign tax has been paid as ‘disregarded income’ in their calculation of the foreign income tax offset (FITO) limit and the…