Section RE 10B — Income Tax Act 2007: Amounts withheld from distributions to holders of FIF attributing interests

RE 10B Amounts withheld from distributions to holders of FIF attributing interests When this section applies (1) This section applies when— (a) a distribution is made to a holder of an attributing interest in a FIF; and (b) section CD 36 (Foreign investment fund income) or EX 59(2) (Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method) applies to the distribution; and (c) an amount is withheld by the payer from the distribution because the payer has treated the distribution as resident passive income subject to the RWT rules. Treatment of amount (2) The amount withheld is treated as— (a) RWT for the purposes of this subpart and subpart LA (General rules for tax credits), and sections LB 3 (Tax credits for resident withholding tax), and RM 1 to RM 10 (which relate to refunds); and (b) tax paid in excess for the purposes of Part 10B of the Tax Administration Act 1994. Treatment of distribution (3) The distribution is treated as resident passive income for the purposes of the sections listed in subsection (2). Refunds (4) Subsection (2) does not apply if the payer or the holder applies under section RM 8(4) or (5) (Overpaid RWT or NRWT), as applicable, for a refund in relation to the amount withheld before the next 31 March after the date on which the amount of tax was withheld. Defined in this Act: amount of tax , attributing interest , FIF , pay , resident passive income , RWT , tax Section RE 10B: inserted (with effect on 1 April 2008), on 7 December 2009, by section 107(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).