Section OB 80 — Income Tax Act 2007: Co-operative companies’ notional distributions that are dividends

OB 80 Co-operative companies’ notional distributions that are dividends Dividends (1) A notional distribution referred to in section OB 79 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 shareholder of the co-operative company. Amount (2) The amount of a shareholder’s dividend is calculated using the formula— credit attached − credit attached. tax rate Definition of items in formula (3) In the formula,— (a) credit attached is the amount of imputation credit attached to the shareholder’s distribution: (b) tax rate is the basic rate of income tax 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 shareholder derives the dividend on the date the co-operative company chooses under section OB 79 to make a notional distribution. Relationship with section OZ 15 (5) Section OZ 15 (Attaching imputation credits and notional distributions: modifying amounts) may apply to modify subsection (2). Defined in this Act: amount , basic rate , co-operative company , dividend , imputation credit , income tax , income year , shareholder , Compare: 2004 No 35 s ME 38 Section OB 80(2) formula: substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 114(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section OB 80(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 80(5) heading: added, on 1 April 2008, by section 503 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section OB 80(5): added, on 1 April 2008, by section 503 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).