Income Tax Assessment Act 1997

Multiple FDA declarations for dividends paid on same day  
717-525(1)
This section operates if the ^* head company of a ^* consolidated group makes 2 or more ^* FDA declarations relating to dividends (within the meaning of Subdivision B of Division 11A of Part III of the Income Tax Assessment Act 1936 ) paid by ^* members of the group on a single day.

Note:

It does not matter whether all those FDA declarations are made under section 128TC of the Income Tax Assessment Act 1936 as affected by section 717-520 of this Act or whether one of the declarations relates to dividends actually paid by the head company.

717-525(2)
The ^* FDA declaration percentage for each ^* FDA declaration must be such that the sum of the amounts worked out under subsection 128TC(2) of the Income Tax Assessment Act 1936 in relation to the FDA declarations is not greater than the ^* head company's ^* FDA surplus at the beginning of the day.

717-525(3)
If (apart from this subsection) that sum is greater than the ^* head company's ^* FDA surplus at the beginning of the day, each of the ^* FDA declarations is valid but is taken always to have effect as if the ^* FDA declaration percentage specified in the declaration were the percentage worked out using the formula:

*FDA declaration percentage actually specified in the declaration

×

That *FDA surplus That sum

717-525(4)
Subsection 128TC(5) of the Income Tax Assessment Act 1936 does not operate in relation to any of the ^* FDA declarations.

717-525(5)
Subsection 128TE(1) of the Income Tax Assessment Act 1936 operates as if it referred to subsection (3) of this section instead of subsection 128TC(5) of that Act.

717-525(6)
To avoid doubt, subsection (3) of this section does not prevent subsection 128TE(1) of the Income Tax Assessment Act 1936 from making the ^* head company liable to pay additional tax by way of penalty.