Section CX 63 — Income Tax Act 2007: Dividends derived after company ceased to be look-through company

CX 63 Dividends derived after company ceased to be look-through company Dividends (1) A dividend derived by a person from a company after it has ceased to be a look-through company is excluded income of the person to the extent to which it is equal to or less than the amount given by subsection (2). Excluded income formula (2) For the purposes of subsection (1), the amount is calculated using the following formula: exit dividends – dividends after look-through. Definition of items in formula (3) The items in the formula are defined in subsections (4) and (5). Exit dividends (4) Exit dividends is the sum of the amounts that would be dividends if the company, immediately after it ceased to be a look-through company,–– (a) disposed of all of its property, other than cash, to an unrelated person at market value for cash; and (b) met all its liabilities at market value, excluding income tax payable through disposing of the property or meeting the liabilities; and (c) were liquidated, with the amount of cash remaining being distributed to its shareholders without imputation credits or FDP credits attached. Dividends after look-through (5) Dividends after look-through is the total dividends paid by the company after it ceases to be a look-through company and before it pays the dividend described in subsection (1) to the person. Defined in this Act: amount , company , dispose , dividend , excluded income , FDP credit , imputation credit , income tax , liquidation , look-through company , shareholder Section CX 63: added, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 36 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).