The ATO on Fri 22.2.2013, issued a Decision Impact Statement on the Full Federal Court’s decision in FCT v Citigroup Pty Ltd (2011) 83 ATR 305.
In that decision, the Full Federal Court unanimously confirmed that Pt IVA applied to cancel foreign tax credits of some $23m arising from a transaction that generated a significant disparity in the tax imposed on the profits in the foreign jurisdiction from that imposed on the profits in Australia. However, the Full Court dismissed the Commissioner’s appeal in relation to the GIC imposed on the taxpayer.
The ATO said the Commissioner did not seek special leave to appeal to the High Court with regard to the GIC matter.
It said the foreign tax credits regime (under former Div 19 of Pt III of the ITAA 1936) has been repealed and replaced by the foreign income tax offset regime. As such, the ATO said the decision of the Full Federal Court has no ongoing impact in relation to the imposition of GIC for disallowed foreign income tax offsets.
[LTN 36, 22/2/13]