Section RF 10 — Income Tax Act 2007: Non-cash dividends

RF 10 Non-cash dividends When subsections (2) to (5) apply (1) Subsections (2) to (5) apply when a person makes a payment of non-resident passive income that consists of a non-cash dividend to the extent to which the amount is not fully imputed. When amount not taxable bonus issue (2) The amount of tax, when the payment is not a taxable bonus issue, is calculated using the formula— (rate A × dividend payment) + (rate B × amount paid). (1 − rate A Definition of items in formula (3) In the formula in subsection (2),— (a) rate A is the rate of tax set out in section RF 8 : (b) dividend payment is the amount of the dividend paid to the extent to which the amount of the dividend is not fully imputed or fully credited for FDP, as described in section RF 9(2) and (4) , disregarding the amount of tax to be withheld: (c) rate B is the rate set out in section RF 7 : (d) amount paid is the amount of the dividend paid to the extent to which the amount of the dividend is fully credited for FDP, as described in section RF 9(4) , disregarding the amount of tax to be withheld. When amount taxable bonus issue (4) The amount of tax, when the payment is a taxable bonus issue, is calculated using the formula— (rate A × dividend payment) + (rate B × amount paid). Definition of items in formula (5) In the formula in subsection (4),— (a) rate A is the rate of tax set out in section RF 8 : (b) dividend payment is the amount of the dividend paid calculated under section CD 7(2) , CD 7B(2) , or CD 8(3) (which relate to bonus issues)— (i) other than a dividend referred to in the item bonus issue : (ii) to the extent to which the amount of the dividend is not fully imputed or fully credited for FDP (as described in sections RF 9 and RF 14 ), before the amount of tax is withheld: (c) rate B is the rate of tax set out in section RF 7 : (d) amount paid is the amount of the dividend calculated under section CD 7(2) , CD 7B(2) , or CD 8(3) together with the amount of an FDP credit attached to the dividend to the extent to which the amount of the dividend is fully credited for FDP, as described in section RF 9(4) , before the amount of tax is withheld. (e) [Repealed] Fully imputed non-cash dividends (5B) When a payment of non-resident passive income consists of a non-cash dividend, the rate of NRWT payable on the amount is 0% to the extent to which the amount is fully imputed. Amount treated as amount withheld and paid under NRWT rules (6) A person who is liable under this section for NRWT must pay the amount to the Commissioner. The amount is treated as if it were an amount withheld and paid under the NRWT rules for the purposes of this Act and the Tax Administration Act 1994 . Amount part of dividend [Repealed] (7) [Repealed] Defined in this Act: amount , amount of tax , Commissioner , dividend , FDP , FDP credit , fully imputed , non-cash dividend , non-resident passive income , NRWT , NRWT rules , pay , tax , taxable bonus issue Compare: 2004 No 35 ss NG 2(1)(b)(ii) , NG 9 Section RF 10(1) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 534(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RF 10(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 534(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RF 10(2) formula: substituted (with effect on 1 April 2008), on 6 October 2009, by section 534(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RF 10(3)(a): replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 130(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section RF 10(4) formula: amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 130(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section RF 10(5)(b): amended (with effect on 1 October 2012), on 2 November 2012, by section 151(a) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section RF 10(5)(d): amended (with effect on 1 October 2012), on 2 November 2012, by section 151(b) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section RF 10(5)(d): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 130(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section RF 10(5)(e): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 130(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section RF 10(5B) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 534(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RF 10(5B): inserted (with effect on 1 April 2008), on 6 October 2009, by section 534(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RF 10(7) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 130(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section RF 10(7): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 130(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section RF 10 list of defined terms CTR additional dividend : repealed (with effect on 1 July 2011), on 7 May 2012, by section 130(5) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section RF 10 list of defined terms fully credited for conduit tax relief : repealed (with effect on 1 July 2011), on 7 May 2012, by section 130(5) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section RF 10 list of defined terms fully imputed : inserted (with effect on 1 April 2008), on 6 October 2009, by section 534(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RF 10 compare note: amended (with effect on 1 April 2008), on 6 October 2009, by section 534(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).