Class Ruling
CR 2022/14A1 - Addendum
Cardno Limited - return of capital and special dividend
-
Please note that the PDF version is the authorised version of this ruling.View the consolidated version for this notice.
Addendum
This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Class Ruling CR 2022/14 to clarify the assessability of the special dividend for non-residents.
CR 2022/14 is amended as follows:
Omit the paragraph; substitute:
If you are a non-resident, 40 cents of the special dividend is non-assessable non-exempt income and not included in your assessable income, as that part of the special dividend was declared to be conduit foreign income (paragraph 802-15(1)(a)). You are also not liable to pay withholding tax in respect of that part of the special dividend (paragraph 802-15(1)(b)).
(a) Omit the paragraph; substitute:
If you are a non-resident and the special dividend is not attributable to a permanent establishment in Australia, 17 cents of the special dividend is not included in your assessable income and is not exempt income (section 128D of the ITAA 1936). However, you are liable to pay withholding tax in respect of that part of the special dividend if subsection 128B(3) of the ITAA 1936 does not apply to you (subsection 128B(1) of the ITAA 1936).
(b) After the paragraph, insert new paragraph 10A:
10A. If you are a non-resident and the special dividend is attributable to a permanent establishment in Australia, 17 cents of the special dividend is included in your assessable income (paragraph 44(1)(c) of the ITAA 1936). However, you are not liable to pay withholding tax in respect of that part of the special dividend (subsection 128B(3E) of the ITAA 1936).
After 'special dividend declared', omit '70%'; substitute '40 cents'.
This Addendum applies from 23 February 2022.
Commissioner of Taxation
14 September 2022
© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA
You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
References
ATO references:
NO 1-S8CT1NB
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
