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

7   Subsection 6(4)

Repeal the subsection, substitute:

(4) Paragraph (d) of the definition of dividend in subsection (1) does not apply if, under an arrangement:

(a) a person pays or credits any money or gives property to the company and the company credits its share capital account with the amount of the money or the value of the property; and

(b) the company pays or credits any money, or distributes property to another person, and debits its share capital account with the amount of the money or the value of the property so paid, credited or distributed.