Section OZ 11 — Income Tax Act 2007: Tax credits for imputation credits and FDP credits

OZ 11 Tax credits for imputation credits and FDP credits When this section applies (1) This section applies when— (a) a person— (i) derives a dividend in the transitional period, if the person is a new company tax rate person that is not a multi-rate PIE: (ii) derives a dividend in the period from 1 October 2010 to 31 March 2013, if the person is a new company tax rate person that is a multi-rate PIE; and (b) the dividend, and the imputation credits and FDP credits attached to the dividend, as applicable, have— (i) an imputation ratio greater than 28/72 and less than or equal to 30/70; or (ii) an FDP ratio greater than 28/72 and less than or equal to 30/70; or (iii) a combined imputation and FDP ratio greater than 28/72 and less than or equal to 30/70; and (c) the person is a new company tax rate person in the period for the dividend. Imputation ratio and FDP ratio (2) For a ratio described in subsection (1)(b)(i) or (ii), the amount of the tax credit that the person has is calculated using the formula— dividend and credits × 0.28. Definition of item in formula (3) In the formula in subsection (2), dividend and credits is the amount of the imputation credit or FDP credit, as applicable, included in the person's assessable income for the purposes of section LE 1(1) or LF 1(1) (which relate to tax credits for imputation credits and FDP credits), together with the amount of dividend to which the relevant credit is attached. Combined imputation and FDP ratio (4) For a ratio described in subsection (1)(b)(iii), the total amount of tax credit that the person has is calculated using the formula— dividend and credits × 0.28. Definition of item in formula (5) In the formula in subsection (4), dividend and credits is the total amount of the imputation credit and FDP credit included in the person's assessable income for the purposes of sections LE 1(1) and LF 1(1) , together with the amount of the dividend to which the credits are attached. For the purposes of the calculation of the total tax credit, imputation credits are reduced before FDP credits. Defined in this Act: amount , assessable income , basic tax rate , combined imputation and FDP ratio , dividend , FDP credit , FDP ratio , imputation credit , imputation ratio , multi-rate PIE , new company tax rate person , tax credit , total tax credit , transitional period Section OZ 11: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section OZ 11(1)(a): substituted, on 1 October 2010, by section 18(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11(1)(b)(i): amended, on 1 October 2010, by section 18(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11(1)(b)(i): amended, on 1 October 2010, by section 18(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11(1)(b)(ii): amended, on 1 October 2010, by section 18(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11(1)(b)(ii): amended, on 1 October 2010, by section 18(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11(1)(b)(iii): amended, on 1 October 2010, by section 18(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11(1)(b)(iii): amended, on 1 October 2010, by section 18(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11(1)(c): amended, on 1 October 2010, by section 18(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11(2) formula: amended, on 1 October 2010, by section 18(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11(4) formula: amended, on 1 October 2010, by section 18(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11 list of defined terms multi-rate PIE : inserted, on 1 October 2010, by section 18(6) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11 list of defined terms new company tax rate person : inserted, on 1 October 2010, by section 18(6) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section OZ 11 compare note: repealed (with effect on 1 April 2008), on 21 December 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).