INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
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Hide history noteIf:
(a) a company (the relevant company ) is a member of a wholly-owned group; and
(b) all the shares in the relevant company are held by one or more other companies that are members of the group; and
(c) the company or companies holding those shares (each a seller ) enter into a contract or contracts to sell the shares to one or more persons (each a buyer ) who are not members of the group; and
(d) within 6 months after a contract is entered into as mentioned in paragraph (c) by a seller to a buyer to sell any of those shares, the relevant company pays a dividend in respect of the shares to the seller; and
(e) it is reasonable to assume that no substantial part of the dividend is attributable to profits of the relevant company before it became, or after it ceased to be, a member of the group; and
(f) the price paid for the sale of the shares was reduced by an amount representing the didvidend;
the reduction in price is taken not to be the making of a related payment in respect of the dividend.
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