Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION

Division 2 - Income

Subdivision D - Dividends

FORMER SECTION 46M

46M SPLITTING OF FRANKABLE DIVIDENDS
(Repealed by No 79 of 2007 )

History

S 46M repealed by No 79 of 2007 , s 3 and Sch 6 item 1, applicable in relation to distributions made on or after 1 July 2004. S 46M formerly read:

SECTION 46M SPLITTING OF FRANKABLE DIVIDENDS
46M(1) [Dividend debited against disqualifying or notional disqualifying account]
If:

(a) the company pays a dividend (the original dividend ) that, apart from this section, is a frankable dividend as defined by section 160APA ; and

(b) apart from this section, the original dividend is debited wholly or partly against either or both of the following:

(i) one or more disqualifying accounts of the company;

(ii) one or more non-disqualifying accounts of the company, to the extent that the debiting causes a debit against the notional disqualifying account of the company in accordance with subsection 46I(5) ;

then the following provisions apply for the purposes of:

(c) sections 45Z to 46M ; and

(d) Part IIIAA and any other provision of this Act whose operation depends on that Part.

46M(2) [Dividend consisting of distribution of property]
If:

(a) the original dividend consists to any extent of a distribution of property other than money; and

(b) the debiting in respect of that distribution of property is to any extent against an amount in one or more reserves or accounts that is attributable either directly, or indirectly as a result of transfers of amounts from other reserves or accounts, to profits arising from the revaluation of the property;
subsection (1) does not apply to the debiting to the extent that it is so attributable.

46M(3) [Original dividend not frankable dividend]
If the original dividend is debited wholly as mentioned in paragraph (1)(b):

(a) it is not a frankable dividend; and

(b) it is not a dividend to which paragraph 160AQF(1)(c), (1AA)(c) or (1AAA)(c) or 160AQFA(1)(c) or (2)(c) or section 160AQG applies.

[ CCH Note: No 147 of 1997, s 3 and Sch 16 item 4, provides an amendment to correct a misdescription of the section to be amended from ``46L(3)(b)'' to ``46M(3)(b)''. As this technical amendment has already been effected by No 76 of 1996 this consolidation has not been done.]

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History

S 46M(3) amended by No 93 of 1999 and No 171 of 1995.

46M(4) [Original dividend deemed to consist of two separate dividends]
If subsection (3) does not apply, the original dividend is taken to consist of 2 separate dividends as follows:

(a) one dividend that:

(i) is not a frankable dividend; and

(ii) is not a dividend to which paragraph 160AQF(1)(c), (1AA)(c) or (1AAA)(c) or 160AQFA(1)(c) or (2)(c) or section 160AQG applies; and

(iii) is equal to the amount of the debit mentioned in paragraph (1)(b); and

(iv) is debited against the one or more accounts, and to the same extent as the debiting, mentioned in that paragraph; and

(b) another dividend that:

(i) is a frankable dividend; and

(ii) is equal to the remainder of the original dividend; and

(iii) is not debited against any disqualifying account, or any non-disqualifying account so as to cause a debit against the notional disqualifying account.

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History

S 46M(4) amended by No 93 of 1999 and No 171 of 1995.

Ss 46M inserted by No 170 of 1995.

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