Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-6
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THE IMPUTATION SYSTEM
Division 200
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Guide to Part 3-6
SECTION 200-5
200-5
The imputation system
The *imputation system partially integrates the income tax liabilities of an Australian corporate tax entity and its members by:
(a) allowing the entity, when distributing profits to its members, to pass to those members credit for income tax paid by the entity on those profits; and
(b) allowing the entity ' s Australian members to claim a tax offset for that credit; and
(c) allowing the entity ' s Australian members to claim a refund if they are unable to fully utilise the tax offset in reducing their income tax.
View history note
Hide history noteThe *imputation system partially integrates the income tax liabilities of an Australian corporate tax entity and its members by:
(a) allowing the entity, when distributing profits to its members, to pass to those members credit for income tax paid by the entity on those profits; and
(b) allowing the entity ' s Australian members to claim a tax offset for that credit; and
(c) allowing the entity ' s Australian members to claim a refund if they are unable to fully utilise the tax offset in reducing their income tax.
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