Section OP 45 — Income Tax Act 2007: Consolidated ICA redemption debit

OP 45 Consolidated ICA redemption debit Debit (1) A consolidated imputation group has an imputation debit for the amount of a redemption debit. When redemption debit arises (2) A redemption debit arises when— (a) a group company that is not an Australian ICA company is— (i) the manager of a unit trust; or (ii) the trustee or manager of a group investment fund; and (b) the group company derives a dividend from the redemption or cancellation of— (i) a unit issued by the unit trust; or (ii) an interest of an investor in the group investment fund; and (c) the company has acquired the unit or interest in the ordinary course of its management activities for the unit trust or group investment fund; and (d) the unit or interest had been acquired by the company on the same terms as those offered to the investors in the unit trust or group investment fund. Calculating amount (3) The debit is for the greater of the amounts described in subsections (4) and (6) calculated for the income year referred to in subsection (8) in which the group company derives the dividend referred to in subsection (2)(b). First amount (4) The first amount is calculated using the formula— credits attached – imputation debits. Definition of items in formula (5) In the formula in subsection (4),— (a) credits attached is the total amount of all imputation credits and FDP credits attached to dividends derived by the group company in the income year in the circumstances set out in subsection (2): (b) imputation debits is the amount of imputation debits in the income year under section OP 42 in the group’s imputation credit account. Second amount (6) The second amount is calculated using the formula— total dividends × (tax liability − continuity debits). taxable income Definition of items in formula (7) In the formula in subsection (6),— (a) total dividends is the total amount of all dividends derived in the circumstances set out in subsection (2), including imputation credits and FDP credits attached to the dividends: (b) taxable income is the taxable income of the group company for the tax year corresponding to the income year in which the dividends are derived: (c) tax liability is the group company’s income tax liability for the tax year corresponding to the income year in which the dividends are derived: (d) continuity debits is the amount of imputation credits attached to the dividends that have been cancelled by an imputation debit under section OP 42 . Table references (8) The table references are as follows: (a) the imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 19 (redemption debit): (b) the imputation debit in subsection (5)(b) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity): (c) the imputation debit in subsection (7)(d) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity). Debit date (9) The debit date is the day the company or the group’s nominated company files the return of income for the tax year corresponding to the income year in which the dividend is derived. Defined in this Act: amount , Australian ICA company , company , consolidated imputation group , dividend , FDP credit , group investment fund , imputation credit , imputation credit account , imputation debit , income tax liability , income year , investor , nominated company , return of income , tax year , taxable income , trustee , unit trust , Compare: 2004 No 35 s ME 41