Section CD 24 — Income Tax Act 2007: Returns of capital: on-market share cancellations

CD 24 Returns of capital: on-market share cancellations Companies acquiring own shares (1) An amount paid by a company in acquiring any of its shares in an on-market cancellation is not a dividend. When excess amount relevant (2) Despite subsection (1), any excess of the amount paid over the available subscribed capital per share calculated under the ordering rule— (a) is treated as a dividend and not a return of capital when applying— (i) section CD 40 : (ii) section CD 43(2)(c) : (iii) section GA 1(4) (Commissioner’s power to adjust); and (b) gives rise to an imputation credit account debit under section OB 42 (ICA on-market cancellation). Defined in this Act: amount , available subscribed capital , company , dividend , imputation credit account , on-market cancellation , ordering rule , pay , share Compare: 2004 No 35 s CD 16 Section CD 24(2)(a)(i): amended (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008-09 and later income years), by section 28(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).