Section CD 33 — Income Tax Act 2007: Payments corresponding to notional distributions of producer boards and co-operative companies

CD 33 Payments corresponding to notional distributions of producer boards and co-operative companies Statutory producer board payments (1) An amount paid by a statutory producer board to a person in relation to an income year is not a dividend if— (a) the person was a member of the board at some time during the income year; and (b) unless the Commissioner allows otherwise, the amount is calculated on the basis of the member’s share of— (i) the total produce transactions of members with the board during the income year; or (ii) the total levies payable by members to the board for the income year; and (c) the amount corresponds to a notional distribution amount treated as a dividend under section CD 13(1) . Co-operative company payments (2) An amount paid by a co-operative company to a person in relation to an income year is not a dividend if— (a) the person was a shareholder of the company at some time during the income year; and (b) the amount is calculated on the basis of the shareholder’s share of the total produce transactions of shareholders with the company during the income year; and (c) the amount corresponds to a notional distribution amount treated as a dividend under section CD 13(3) . Non-deductible capital (3) An amount that is not a dividend as a result of this section is nevertheless treated as a return of capital for the purposes of the capital limitation. Defined in this Act: amount , capital limitation , Commissioner , co-operative company , dividend , income year , levy , member , pay , produce transactions , producer board , shareholder , statutory producer board , Compare: 2004 No 35 s CD 24