Section OB 79 — Income Tax Act 2007: Co-operative companies attaching imputation credits to notional distributions

OB 79 Co-operative companies attaching imputation credits to notional distributions Election (1) On meeting the requirements of subsection (2), a co-operative company that is an ICA company may choose, for an income year, to attach an imputation credit to a notional distribution, as a result of which a member derives a dividend of an amount calculated under section OB 80 . Requirements (2) A co-operative company may make an election under subsection (1) if— (a) the distribution is made to all persons who were shareholders of the company at a time during the income year; and (b) no other election to pay a notional distribution is made for the income year. Shareholder’s credits (3) The amount of a shareholder’s share of an imputation credit attached to a notional distribution is calculated using the formula— produce payments × credit attached. total payments Definition of items in formula (4) In the formula,— (a) produce payments is the amount of all payments to or by the shareholder for the shareholder’s produce transactions during the income year: (b) total payments is the amount of all payments to or by shareholders for produce transactions during the income year: (c) credit attached is the amount of imputation credit attached to the distribution. Defined in this Act: amount , co-operative company , dividend , ICA company , imputation credit , income year , member , pay , produce transactions , shareholder , Compare: 2004 No 35 s ME 37