Section RM 33 — Income Tax Act 2007: Limits on refunds for certain unit trusts and group investment funds

RM 33 Limits on refunds for certain unit trusts and group investment funds When this section applies (1) This section applies when a public unit trust or group investment fund— (a) is entitled to a refund under sections RM 2 or RM 4 to RM 6 ; and (b) goes into liquidation or chooses to become a portfolio investment entity; and (c) at the time of the liquidation or election, has— (i) a credit balance in its available subscribed capital (ASC) account on liquidation; and (ii) a zero balance in its imputation credit account. Calculating amount of refund (2) The refund must be no more than an amount calculated using the formula— ASC credit balance × maximum imputation ratio. Definition of items in formula (3) In the formula,— (a) ASC credit balance is the credit balance in the ASC account of the public unit trust or group investment fund, as applicable: (b) maximum imputation ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios), read as if the words “ in which the dividend or distribution is paid ” in subsection (3) were “ in which the liquidation occurs or the election is made ” . Defined in this Act: amount , ASC account , group investment fund , imputation credit account , liquidation , maximum permitted ratio , portfolio investment entity , public unit trust , Compare: 2004 No 35 s MD 2A