Section OE 20 — Income Tax Act 2007: BETA person’s payment of income tax

OE 20 BETA person’s payment of income tax Election (1) On meeting the requirements of subsection (4), a BETA person may choose to use some or all of a credit balance in their branch equivalent tax account to satisfy an income tax liability of the person for an income year. Debit (2) The amount used to satisfy the income tax liability is a branch equivalent tax debit in the person’s branch equivalent tax account. Table reference (3) The branch equivalent tax debit in subsection (2) is referred to in table O10: person’s branch equivalent tax debits, row 2 (payment of income tax). Requirements (4) The person may make an election under subsection (1) if— (a) they derive a dividend from an income interest in a CFC during the income year; and (b) a credit balance exists in their branch equivalent tax account; and (c) they have paid the income tax giving rise to a credit included in the credit balance. Manner of election (5) The person makes the election by recording the amount as a debit in the branch equivalent tax account. Income tax paid (6) Once the election is made, the income tax liability is satisfied to the extent to which the liability is no more than the income tax payable on the amount of the dividend derived. Debit date (7) The debit date is the day of election. Defined in this Act: amount , BETA person , branch equivalent tax account , branch equivalent tax debit , CFC , dividend , income interest , income tax , income tax liability , income year , pay , Compare: 2004 No 35 ss MF 13(3)(a) , MF 14