Section LK 2 — Income Tax Act 2007: Calculation of amount of credit

LK 2 Calculation of amount of credit Amount of credit (1) For the purposes of section LK 1(1) , the amount of a tax credit for a tax year for a person is equal to an amount calculated using the formula— section EX 18 income interest × (tax paid − excluded foreign tax). Definition of items in formula (2) In the formula,— (a) section EX 18 income interest is the income interest of the person used to calculate attributed CFC income under section EX 18 (Formula for calculating attributed CFC income or loss) for the accounting period corresponding to the tax year: (b) tax paid is the amount of income tax or foreign income tax paid or payable by the CFC for the accounting period corresponding to the tax year, including an amount withheld by another person and paid or payable on behalf of the CFC: (c) excluded foreign tax is an amount of foreign income tax paid in a country or territory listed in schedule 27 (Countries and types of income with unrecognised tax) to the extent to which the foreign income tax is paid on the types of income listed in the schedule. Defined in this Act: accounting period , amount , attributed CFC income , CFC , foreign income tax , income interest , income tax , pay , tax credit , tax year , Compare: 2004 No 35 s LC 4(1)–(3) Section LK 2(2)(b): substituted (with effect on 1 April 2008), on 6 October 2009, by section 341(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).