Section LF 7 — Income Tax Act 2007: Application of combined imputation and FDP ratio

LF 7 Application of combined imputation and FDP ratio When this section applies (1) This section applies when— (a) a person who has a tax credit under section LF 1 receives an imputation credit and an FDP credit attached to a dividend; and (b) an excess credit amount arises in relation to the dividend; and (c) the FDP credit is equal to or less than the excess credit amount. Amount of reduction (2) The person’s credit is reduced by an amount calculated using the formula— excess credit amount for dividend − FDP credit attached. Relationship with section OZ 10 (3) Section OZ 10 (Modifying ratios for imputation credits and FDP credits) may apply to modify this section. Defined in this Act: amount , dividend , excess credit amount , FDP credit , imputation credit , tax credit , Compare: 2004 No 35 s LB 1(1)(e), (5) Section LF 7(3) heading: added, on 1 April 2008, by section 447 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section LF 7(3): added, on 1 April 2008, by section 447 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).