New International Tax Arrangements (Participation Exemption and Other Measures) Act 2004 (96 of 2004)

Schedule 2   Foreign branch income, non-portfolio dividends and listed countries

Part 3   Non-portfolio dividend exemption: consequential amendments

Income Tax Assessment Act 1936

41   Subsection 160AFCD(2) (definition of UT or underlying tax)

Repeal the definition, substitute:

UT or underlying tax , where the taxpayer is a company and the attribution account payment is a non-portfolio dividend, means the amount by which the section 23AI non-assessable part would have been greater if:

(a) the attribution account entity had not paid any foreign tax on its profits; and

(b) any other attribution account entity, in relation to which the taxpayer has an attribution debit for an attribution account payment that is a non-portfolio dividend, had not paid any foreign tax on its profits; and

(c) each of those attribution account entities had distributed the same percentage of its distributable profits as was actually distributed.