Income Tax Assessment Act 1936

PART X - ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES  

Division 7 - Calculation of attributable income of CFC  

Subdivision A - Basic principles  

SECTION 387   REDUCTION OF ATTRIBUTABLE INCOME BECAUSE OF INTERIM DIVIDENDS  

387(1)   [Conditions for reduction of attributable income]  

Where:

(a) during the eligible period, the eligible CFC pays a dividend to the eligible taxpayer or to another entity; and

(b) if the dividend is paid to the eligible taxpayer - the whole or part of the dividend is included in the assessable income of the eligible taxpayer of a year of income; and

(c) (Repealed by No 96 of 2004)

(d) the whole or part of the grossed-up assessable component of the dividend may reasonably be regarded as having been paid out of the attributable income of the eligible CFC for the eligible period;

then, for the purposes of this Part, the attributable income of the eligible CFC for the eligible period in relation to the eligible taxpayer is reduced by an amount equal to the whole or the part of the grossed-up assessable component of the dividend.

387(2)   [Definitions]  

In this section:

grossed-up assessable component
, in relation to a dividend the whole or part of which is included in the assessable income of the eligible taxpayer, means the amount of the whole or the part divided by the eligible taxpayer's attribution percentage for the eligible CFC at the time of payment of the dividend.

grossed-up 458 component
(Repealed by No 96 of 2004)