Section OC 22 — Income Tax Act 2007: FDPA breach of FDP ratio

OC 22 FDPA breach of FDP ratio Debit (1) An FDPA company has an FDP debit for a breach of the benchmark dividend rules in section OC 28(4) for an amount calculated using the formula— net dividends × FDP ratio – credits attached. 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 imputation credits and FDP credits attached to the dividends: (b) FDP ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios) or, if it is less, the greatest FDP ratio of dividends paid by the company during the tax year: (c) credits attached is the total amount of all FDP credits attached to dividends paid by the company during the tax year. Table reference (3) The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 11 (breach of FDP ratio). Ratio change declaration (4) A debit under subsection (1) does not arise if the FDPA company provides a ratio change declaration under section OC 28(6) . Debit date (5) The debit date is the last day of the tax year. Defined in this Act: amount , benchmark dividend , dividend , FDP account , FDP credit , FDP debit , FDP ratio , FDPA company , imputation credit , pay , tax year , Compare: 2004 No 35 ss MG 5(1)(f), (2)(e) , MG 8(4)