Taxation Laws Amendment (Company Law Review) Act 1998 (63 of 1998)

Schedule 3   Definition of dividend, and redeemable preference shares

Income Tax Assessment Act 1936

6   Subsection 6(1) (paragraph (e) of the definition of dividend)

Repeal the paragraph, substitute:

(e) moneys paid or credited, or property distributed, by a company for the redemption or cancellation of a redeemable preference share if:

(i) the company gives the holder of the share a notice when it redeems or cancels the share; and

(ii) the notice specifies the amount paid-up on the share immediately before the cancellation or redemption; and

(iii) the amount is debited to the company's share capital account;

except to the extent that the amount of those moneys or the value of that property, as the case may be, is greater than the amount specified in the notice as the amount paid-up on the share; or