Section OB 63 — Income Tax Act 2007: Australian dividends

OB 63 Australian dividends No credits attached (1) Despite section OB 60(1) , an ICA company must not attach an imputation credit to a dividend if— (a) the Income Tax Assessment Act 1997 (Aust) applies to the payment of the dividend by the company; and (b) the dividend is paid in relation to a share that is, or forms part of, a debt interest under that Act; and (c) the payment of the dividend is included in the company’s return of income to the Australian Federal Commissioner of Taxation. Exclusion: groups of companies (2) Subsection (1) does not apply in relation to a share issued before 21 July 2005 if, when the dividend is paid, the shareholder and the ICA company— (a) are not part of the same group of companies: (b) are part of the same wholly-owned group of companies and not resident in New Zealand. Exclusion: reasons for acquisition of shares (3) Subsection (1) does not apply in relation to a share issued before 21 July 2005 if— (a) the shareholder and the ICA company are part of the same group of companies; and (b) the shareholder acquired the share— (i) as part of a sharebroking business: (ii) as an investment held by the shareholder as part of an insurance business: (iii) as security for a loan given as part of a business of lending money: (iv) as a trustee for a beneficiary who is not a company that is part of the same group of companies as the shareholder: (v) for a reason that does not include the fact that the shareholder and the ICA company were part of the same group of companies. Defined in this Act: business , company , dividend , group of companies , ICA company , imputation credit , pay , resident in New Zealand , share , shareholder , trustee , wholly-owned group of companies , Compare: 2004 No 35 s ME 6(1B)–(1D)