New International Tax Arrangements (Participation Exemption and Other Measures) Act 2004 (96 of 2004)

Schedule 2   Foreign branch income, non-portfolio dividends and listed countries

Part 3   Non-portfolio dividend exemption: consequential amendments

Income Tax Assessment Act 1936

43   Subsection 160AFCJ(4) (definition of UT or underlying tax)

Repeal the definition, substitute:

UT or underlying tax means:

(a) any foreign tax that, disregarding this section, the taxpayer is taken, for the purposes of this Division, to have paid, and to have been personally liable for, under subparagraph 6AB(3)(a)(ii); or

(b) where the taxpayer is a company and the FIF attribution account payment is a non-portfolio dividend, the amount by which the section 23AK non-assessable part would have been greater if:

(i) the FIF attribution account entity had not paid any foreign tax on its profits; and

(ii) any other FIF attribution account entity, in relation to which the taxpayer has a FIF attribution debit for a FIF attribution account payment that is a non-portfolio dividend, had not paid any foreign tax on its profits; and

(iii) each of those FIF attribution account entities had distributed the same percentage of its distributable profits as was actually distributed.