• Section 7 - Reduction of attributable income because of interim dividends

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    The attributable income of a CFC is reduced if you are taxed on a dividend paid by the CFC out of current year profits. A dividend is treated as paid out of current year profits only after profits from previous years have been distributed. The amount of the reduction is equal to the attributable income of the CFC referable to the current year profits that were distributed. Your attributable income is also reduced in the same way if you are taxed on a non-portfolio dividend paid by the CFC out of current year profits to another entity you control.

    Last modified: 05 Dec 2006QC 17522