Section OB 75 — Income Tax Act 2007: Statutory producer boards’ notional distributions that are dividends

OB 75 Statutory producer boards’ notional distributions that are dividends Dividend derived (1) A notional distribution to which section OB 74 applies that has an imputation credit attached is a dividend under section CD 13 (Notional distributions of producer boards and co-operative companies) derived by a member. Calculation of amount (2) The amount of the dividend is calculated using the formula— credit attached − credit attached. tax rate Definitions of items in formula (3) In the formula,— (a) credit attached is the amount of imputation credit attached to the member’s distribution: (b) tax rate is the basic rate of income tax for companies set out in schedule 1 , part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) for the income year. When derived (4) The member derives the dividend on the date the statutory producer board chooses under section OB 74 to make a notional distribution. Returns and information (5) For the purposes of this section, the producer board must— (a) include the details of the dividend with the return of income filed for the tax year corresponding to the income year in relation to which the distribution was made; and (b) retain relevant information to enable the Commissioner to determine whether a later distribution is not a dividend under section CD 26(3) or CD 33(1) (which relate to capital distributions on liquidation or emigration and payments that correspond to notional distributions). Relationship with section OZ 15 (6) Section OZ 15 (Attaching imputation credits and notional distributions: modifying amounts) may apply to modify subsection (2). Defined in this Act: amount , basic rate , Commissioner , company , dividend , imputation credit , income tax , income year , member , pay , return of income , statutory producer board , tax year , Compare: 2004 No 35 s ME 33 Section OB 75(3)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section OB 75(6) heading: added, on 1 April 2008, by section 501 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section OB 75(6): added, on 1 April 2008, by section 501 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).