Income Tax Assessment Act 1936

S 46I repealed by No 79 of 2007 , s 3 and Sch 6 item 1, applicable in relation to distributions made on or after 1 July 2004. S 46I formerly read:

SECTION 46I MEANING OF NOTIONAL DISQUALIFYING ACCOUNT  
46I(1) [Notional disqualifying account]  

Every company has a notional disqualifying account .

46I(2) Surplus.  

The notional disqualifying account has a surplus if the sum of the amounts credited to it exceeds the sum of the amounts debited against it.

46I(3) Credit for transfer from disqualifying account.  

If the company transfers an amount from a disqualifying account to a non-disqualifying account, then, except where the transfer is an excluded transfer (see section 46J ), the notional disqualifying account is credited at the time of the transfer by the amount transferred.

46I(4) Debit for transfer to disqualifying account.  

If:

(a) the company transfers an amount from a non-disqualifying account to a disqualifying account; and

(b) immediately before the transfer, the notional disqualifying account has a surplus;

the amount transferred, to the extent that it does not exceed the amount of the surplus in the notional disqualifying account, is debited against the notional disqualifying account at the time of the transfer.

46I(5) Debit for dividend payment.  

If:

(a) the company pays a dividend that is debited wholly or partly against one or more non-disqualifying accounts of the company; and

(b) immediately before the payment, the notional disqualifying account has a surplus;

the notional disqualifying account is debited at the time of the payment by the lesser of:

(c) the sum of the debits against the non-disqualifying accounts; and

(d) the amount of the surplus in the notional disqualifying account.

S 46I inserted by No 170 of 1995.