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 pai…