Date posted: 19/04/2022

Submission on Australian limited partnerships and foreign tax credits

CA ANZ provided feedback on IR’s draft rulings on whether foreign tax credits may be claimed on partnership income received by a partner in an Australian limited partnership.

In brief

  • Draft rulings are a reissue of longstanding and settled view
  • CA ANZ recommended expanding the commentary to explain the relevance of two specific legislative references

These five Rulings address the ability of a New Zealand resident partner of an Australian limited partnership to claim foreign tax credits for Australian income tax and dividend withholding tax paid by the partnership on Australian source income.

CA ANZ supported the addition of discussions/references to the possible implications of the hybrid rules and the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.

CA ANZ recommended the commentary be expanded to explain the relevance of legislative references that treat as income - amounts derived from business, and dividends.

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