Section OF 4 — Income Tax Act 2007: ASCA redemption credit

OF 4 ASCA redemption credit Credit (1) An ASC account company has an ASC credit when the company redeems a share in the company for an amount calculated using the formula— ASC amount – redemption proceeds. Definition of items in formula (2) In the formula,— (a) ASC amount is the amount of the available subscribed capital for the redemption calculated under section CD 22(4) (Returns of capital: off-market share cancellations): (b) redemption proceeds is the amount of the proceeds from the redemption calculated under sections CD 4 to CD 6 (which relate to the nature of a dividend). Positive result (3) If the result of the formula in subsection (1) is negative, the amount is treated as zero. Table reference (4) The ASC credit in subsection (1) is referred to in table O11: ASC credits, row 2 (redemption credit). Credit date (5) The credit date is the day the company redeems the share. Defined in this Act: amount , ASC account , ASC account company , ASC credit , available subscribed capital , share , Compare: 2004 No 35 s MJ 5