Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 2 - Income  

Subdivision D - Dividends  

SECTION 45   STREAMING OF BONUS SHARES AND UNFRANKED DIVIDENDS  

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Application of section

45(1)    

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This section applies in respect of a company that, whether in the same year of income or in different years of income, streams the provision of shares (other than shares to which subsection 6BA(5) applies) and the payment of minimally franked dividends to its shareholders in such a way that:

(a) the shares are received by some shareholders but not all shareholders; and

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(b) some or all of the shareholders who do not receive the shares receive or will receive minimally franked dividends.

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45(2)    

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The value of the share at the time that the shareholder is provided with the share is taken, for the purposes of this Act, to be a dividend that is unfrankable (within the meaning of subsection 995-1(1) of the Income Tax Assessment Act 1997 ) and that is paid by the company, out of profits of the company, to the shareholder at that time.

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History

S 45(2) amended by No 101 of 2006, s 3 and Sch 3 item 4, by repealing the second sentence, effective 1 January 2008. The second sentence formerly read:

No entitlement to a rebate arises under section 46A in respect of the dividend.

S 45(2) amended by No 101 of 2006 , s 3 and Sch 2 items 205 to 206, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .

45(3)    

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A dividend is minimally franked if it is not franked, or is franked to less than 10%, in accordance with section 202-5 or 208-60 of the Income Tax Assessment Act 1997 .

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History

S 45(3) amended by No 101 of 2006 , s 3 and Sch 2 item 207, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .

Former s 45 repealed by No 51 of 1986, amended by No 108 of 1981, No 80 of 1975, No 164 of 1973, No 51 of 1973, No 4 of 1968, No 85 of 1967, No 18 of 1960, No 81 of 1953, No 44 of 1951 and No 44 of 1948 and inserted by No 11 of 1947.

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History

Archived:

S 45(4) repealed as inoperative by No 101 of 2006 , s 3 and Sch 1 item 58, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .

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