Section LF 8 — Income Tax Act 2007: Credits for persons who are non-resident or who receive exempt income

LF 8 Credits for persons who are non-resident or who receive exempt income When this section applies (1) This section applies for a tax year when a company resident in New Zealand pays a dividend with an FDP credit attached to a person as shareholder if— (a) the person is non-resident; or (b) the person is resident in New Zealand and the dividend is exempt income other than under sections CW 9 and CW 10 (which relate to dividends that are exempt income). Amount of tax credit (2) The person has a tax credit for the tax year equal to the amount of the FDP credit attached to the dividend. When amount altered (3) The amount of the person’s credit in subsection (2) may be reduced or increased to the extent to which— (a) any of sections LF 2 to LF 7 apply: (b) an FDP credit is used for a tax year to reduce the person’s liability under section RF 14 (Treatment of FDP credits). Arrangements for tax advantage (4) A person’s tax credit under this section is extinguished if sections GB 35 (Imputation arrangements to obtain tax advantage) and GB 36 (Reconstruction of imputation arrangements to obtain tax advantage) apply. Refunds (5) To obtain a refund of the credit, the person must— (a) ask the Commissioner for the refund after the 31 May that follows the end of the tax year; and (b) meet the requirements of section 78D of the Tax Administration Act 1994. Defined in this Act: amount , Commissioner , company , dividend , exempt income , FDP credit , non-resident , pay , resident in New Zealand , shareholder , tax credit , tax year , Compare: 2004 No 35 ss LB 1(1)(d), (l) , LD 9 Section LF 8(1): substituted (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 108(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section LF 8(1)(b): amended (with effect on 1 July 2011), on 2 November 2012 (applying for income years beginning on or after 1 July 2009), by section 116(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).