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Can you claim a foreign income tax offset (FITO) for the Cess type A you pay in your income tax return for Country A?

The XXXX is a tax of the federal government of Country A and Article X of the Double Taxation Agreement (DTA) between Australia and Country A details that tax paid under the law of Country A and in accordance with the DTA shall be allowed as a credit against Australian tax payable in respect of any income derived by a resident of Australia from sources in Country A. This ruling applies for the following periods: Period ended DD MM YY Period ended DD MM YY Period ended DD MM YY Period ended DD MM YY Period ended DD MM YY Period ending DD MM YY The scheme commenced on: DD MM YY

You are an Australian citizen and resident for tax purposes. You are also a resident of Country A and have been filing tax returns there since the YY income year. The tax year for Country A starts on DD MM of each year and ends on DD MM. You have been reporting your income earned in Country A in your Australian tax return and have been claiming the FITO for tax you have paid in Country A on this income. As part of your tax return for Country A pay a XXXX. Details on the this include: •                 It is calculated at a rate of X% •                 It is calculated on the tax payable or tax amount and not on the total income •                 It is applicable to all taxpayers of Country A •                 It generates specific revenue for; ­       Funding and strengthening public healthcare systems, ­       Improving quality, access, and infrastructure in primary, secondary, and higher education, ­       Support for government welfare initiatives in the health and education sectors.

Your tax agent from Country A advised in an email forwarded to the ATO on DD MM YY that "A XXXX is distinct from general tax revenue in the sense that it is collected for a specific purpose and is intended to be utilised for that sector." You have not currently included the relevant tax in your annual FITO claim.

Income Tax Assessment Act 1997 subsection 770 International Tax Agreements Act 1953