Section CD 19 — Income Tax Act 2007: Foreign tax credits and refunds linked to dividends

CD 19 Foreign tax credits and refunds linked to dividends Foreign tax credits (1) If a double tax agreement gives a person a tax credit in a foreign country when they derive a dividend from that country, the amount of the dividend is increased by the tax credit. Foreign tax refunds (2) When a person who has derived a dividend from outside New Zealand also derives a refund of income tax of a foreign country, the refund is treated as a dividend if— (a) the company paying the dividend was entitled to deduct the tax from the dividend; and (b) the person was not personally liable to pay the tax. Defined in this Act: amount , company , dividend , double tax agreement , income tax , New Zealand , pay , tax Compare: 2004 No 35 s CD 11