Section LF 1 — Income Tax Act 2007: Tax credits for FDP credits

LF 1 Tax credits for FDP credits Amount of credit (1) A person whose assessable income for an income year includes a foreign dividend payment (FDP) credit has a tax credit equal to the amount of the FDP credit for the tax year corresponding to the income year. Section OZ 11 (Tax credits for imputation credits and FDP credits) may apply to modify this section. Exclusion (2) For a returning share transfer, a share user does not have a tax credit for an imputation credit attached to a dividend derived in a period in which they hold a share acquired under the transfer. However, a person providing a share under a returning share transfer is allowed a tax credit for the amount of an imputation credit recorded in the credit transfer notice, see section LF 5 . When amount adjusted (3) The amount of the person’s credit in subsection (1) may be reduced or increased if any of sections LF 2 to LF 9 apply. Multi-rate PIEs and their investors (4) For a multi-rate PIE and an investor in a multi-rate PIE, the amount of a tax credit is limited to the extent allowed under subpart HM (Portfolio investment entities). Arrangements for tax advantage (5) A person’s tax credit under this section is extinguished if either of the following sections apply: (a) section GB 36 (Reconstruction of imputation arrangements to obtain tax advantage): (b) section GB 38 (When sections GB 35 to GB 37 apply to consolidated groups). Relationship of sections in this subpart (6) Sections LF 1 to LF 7 , LF 9 , and LF 10 do not apply in relation to a non-resident or a person who receives exempt income as set out in section LF 8 . Defined in this Act: amount , assessable income , corresponding income year , credit transfer notice , dividend , exempt income , FDP credit , imputation credit , income year , investor , multi-rate PIE , non-resident , returning share transfer , share , share user , tax year , Compare: 2004 No 35 ss LB 1(1)(l) , LD 8(1), (1B), (1C) Section LF 1(1): amended, on 1 April 2008, by section 445 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section LF 1(4) heading: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 328(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LF 1(4): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 328(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LF 1 list of defined terms multi-rate PIE : inserted, on 1 April 2010, by section 328(2)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LF 1 list of defined terms portfolio tax rate entity : repealed, on 1 April 2010, by section 328(2)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).