New Business Tax System (Debt and Equity) Act 2001 (163 of 2001)

Schedule 1   Debt and equity interests

Part 2   Amendment of the Income Tax Assessment Act 1936

Income Tax Assessment Act 1936

63   Subsection 46A(1) (definition of dividend )

Repeal the definition, substitute:

dividend :

(a) means a dividend paid by a company that is a resident; and

(b) does not, except in paragraph (6)(a) or (b), include a dividend unless the payment of the dividend arose out of, or was made in the course of, a transaction, operation, undertaking, scheme or arrangement that the Commissioner is satisfied was by way of dividend stripping; and

(c) does not include a dividend paid in respect of a non-equity share in the company.