Income Tax Assessment Act 1936

Div 1A repealed by No 53 of 2015, s 3 and Sch 1 item 1, applicable in relation to the 2016-17 income year and later income years.

Division 1A comprising s 24B to s 24N inserted by No 164 of 1973.

S 24J repealed by No 53 of 2015, s 3 and Sch 1 item 1, applicable in relation to the 2016-17 income year and later income years. S 24J formerly read:

SECTION 24J SOURCE OF DIVIDENDS  
24J(1)
In this section:

prescribed income
means income consisting of Territory income or residual income, or both.

residual income
means income derived before 20 July 1972 from a source that, for the purposes of the Income Tax Assessment Act 1936 as amended and in force at the time when the income was derived, was a source outside Australia or was a source in a Territory that is a prescribed Territory.

Territory income
means income to which section 24F or 24G applies.

24J(2)
For the purposes of this Division, but subject to subsection (3), income consisting of a dividend shall be deemed to be derived from a source in a prescribed Territory if, and only if:

(a) the dividend:

(i) is paid by a company that is a Territory company in relation to the year of income of the company in which the dividend is paid; and

(ii) is paid by that company wholly and exclusively out of the amount remaining after deducting from prescribed income of the company all losses and outgoings incurred in gaining or producing that income that would have been allowable deductions if that income had been assessable income; or

(b) the dividend is paid by a company that was incorporated in a prescribed Territory but is not a Territory company in relation to the year of income of the company in which the dividend is paid, and is paid by that company:

(i) wholly and exclusively out of the amount remaining after deducting from residual income of the company all losses and outgoings incurred in gaining or producing that income that would have been allowable deductions if that income had been assessable income; or

(ii) wholly and exclusively out of the amount remaining after deducting from income, being a dividend, derived by the company, being a dividend that is deemed to be derived from a source in a prescribed Territory by another application or other applications of this paragraph, all losses and outgoings incurred in gaining or producing that income that would have been allowable deductions if that income had been assessable income.

24J(3)
Where:

(a) a dividend derived by a prescribed person is attributable to residual income; and

(b) the Commissioner is satisfied that the dividend would not have been derived by a prescribed person but for:

(i) a change in the beneficial ownership of shares in a company that took place on or after 20 July 1972; or

(ii) the making of any agreement or other instrument, the granting or assignment of, or the failure to exercise, any right, power or option, or the doing of any other act or thing, in relation to shares in a company on or after that date,

the dividend shall be deemed, for the purposes of this Division, not to have been derived from a source in a prescribed Territory.

24J(4)
Subparagraph (3)(b)(i) does not apply in relation to a change in the beneficial ownership of shares resulting from:

(a) a will, a codicil or an order of a court that varied or modified the provisions of a will or codicil; or

(b) an intestacy or an order of a court that varied or modified the application, in relation to the estate of a deceased person, of the provisions of the law relating to the distribution of the estates of persons who die intestate.

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History

S 24J(4) amended by No 108 of 1981.

24J(5)
For the purposes of subsection (3), a dividend is attributable to residual income if the dividend is paid in whole or in part out of:

(a) an amount ascertained in accordance with paragraph (2)(a), where the amount is so ascertained by reference to an amount of prescribed income of a company that includes residual income of the company; or

(b) an amount ascertained in accordance with paragraph (2)(b).

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History

S 24J(5) amended by No 108 of 1981.

24J(6)
Where a dividend paid by a company incorporated in a prescribed Territory to another company incorporated in a prescribed Territory is attributable to residual income, any dividend paid by the other company in whole or in part out of the first-mentioned dividend shall be deemed to be attributable to residual income.

24J(7)
The reference in subsection (6) to a dividend that is attributable to residual income includes a reference to a dividend that is deemed to be attributable to residual income by virtue of any other application or applications of that subsection.

S 24J inserted by No 164 of 1973.