Burton v CofT – only 50% ‘foreign income tax offset’ (FITO) for US capital gains tax, levied on the whole gain (because of our 50% CGT discount)
On 27.11.18, the Federal Court held that a taxpayer, was only entitled to a Foreign Income Tax Offset, for 50% of the US tax paid, on the sale of investments, as only half the capital gain had been included in his Australian ‘assessable income’ (after applying the standard 50% CGT discount, for assets held for…