INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 1A - Circumstances in which a taxpayer can qualify for a franking credit, a franking rebate or the intercorporate dividend rebate  

Subdivision A - Preliminary  

SECTION 160APHN   RELATED PAYMENTS  

160APHN(1)   [Non-definitive examples of related payments]  

This section gives examples of, but does not limit, what constitutes, for the purposes of this Division, the making of a related payment by a taxpayer or an associate of a taxpayer in respect of a dividend paid in respect of shares, or in respect of a distribution made in respect of interests in shares, held by the taxpayer.

160APHN(2)   [Passing the benefit to a person]  

The taxpayer or associate is taken, for the purposes of this Division, to have made, to be under an obligation to make, or to be likely to make, a related payment in respect of the dividend or distribution if, under an arrangement, the taxpayer or associate has done, is under an obligation to do, or may reasonably be expected to do, as the case may be, anything having the effect of passing the benefit of the dividend or distribution to one or more other persons.

160APHN(3)   [Acts that pass the benefit]  

Without limiting subsection (2), the doing of any of the following by the taxpayer or an associate of the taxpayer in the circumstances mentioned in subsection (4) may have the effect of passing the benefit of the dividend or distribution to one or more other persons:

(a) causing a payment or payments to be made to, or in accordance with the directions of, the other person or other persons; or

(b) causing an amount or amounts to be credited to, or applied for the benefit of, the other person or other persons; or

(c) causing services to be provided to, or in accordance with the directions of, the other person or other persons; or

(d) causing property to be transferred to, or in accordance with the directions of, the other person or other persons; or

(e) allowing any property or money to be used by the other person or other persons or by someone nominated by the other person or other persons; or

(f) causing an amount or amounts to be set off against, or to be otherwise applied in reduction of, a debt or debts owed by the other person or other persons to the taxpayer or associate; or

(g) agreeing to treat an amount or amounts owed to the other person or other persons by the taxpayer or associate as having been increased.

160APHN(4)   [Circumstances]  

The circumstances referred to in subsection (3), are where:

(a) the amount or the sum of the amounts paid, credited or applied; or

(b) the value or the sum of the values of the services provided, of the property transferred or of the use of the property or money; or

(c) the amount or the sum of the amounts of the set-offs, reductions or increases;

as the case may be:

(d) is, or may reasonably be expected to be, equal to; or

(e) approximates or may reasonably be expected to approximate; or

(f) is calculated by reference to;

the amount of the dividend or distribution.

160APHN(5)   [Distribution by the trustees]  

The distribution by a trustee of a dividend to a beneficiary or beneficiaries of the trust who are presently entitled to it does not constitute the making of a related payment in respect of the dividend.

160APHN(6)   [Fixing price or value etc]  

If an amount is taken into account in any way in favour of, or is notionally accredited to, a person in fixing a price or value, or in determining another amount, the first-mentioned amount is taken, for the purposes of this section, to be credited to the other person.

160APHN(7)   [Effect]  

This section has effect subject to section 160APHNA .