Section OB 43 — Income Tax Act 2007: ICA breach of imputation ratio

OB 43 ICA breach of imputation ratio Debit (1) An ICA company has an imputation debit for a breach of the benchmark dividend rules in section OB 61(5) for an amount calculated using the formula— (net dividends × imputation ratio) – attached credits. Definition of items in formula (2) In the formula,— (a) net dividends is the total amount of all dividends paid by the company during the tax year, excluding the amount of imputation credits and FDP credits attached to the dividends: (b) imputation ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios) for an imputation credit or, if less, the greatest imputation ratio of dividends paid by the company for the tax year: (c) attached credits is the total amount of all imputation credits attached to dividends paid by the company for the tax year. Table reference (3) The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 16 (breach of imputation ratio). Ratio change declaration (4) A debit under subsection (1) does not arise if the company provides a ratio change declaration under section OB 61(6) . Debit date (5) The debit date is the last day of the tax year. Defined in this Act: amount , benchmark dividend , dividend , FDP credit , ICA company , imputation credit , imputation debit , imputation ratio , maximum permitted ratio , tax year , Compare: 2004 No 35 s ME 5(1)(f), (2)(f)