INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 2 - Income  

Subdivision D - Dividends  

SECTION 46F   REBATE NOT ALLOWABLE FOR CERTAIN DIVIDENDS  

46F(1)   [Interpretation]  

In this section:

exempting entity
has the same meaning as in the Income Tax Assessment Act 1997 .

group company
has the same meaning as in section 160AFE of this Act as in force immediately before 1 July 2002.

unfranked part
of a dividend includes a dividend that is unfrankable under the Income Tax Assessment Act 1997 .

46F(2)   [Entitlement]  

Subject to this section, a shareholder is not entitled to, and must not be allowed, a rebate under section 46 or 46A in respect of:


(a) if a dividend was paid to the shareholder by a company other than an exempting entity, or by an exempting entity and item 6 or 7 of the table in section 208-130 of the Income Tax Assessment Act 1997 applied in relation to the dividend:


(i) the unfranked part of the dividend; or

(ii) any part of the dividend in respect of which a determination is made under Subdivision 204-D of the Income Tax Assessment Act 1997 , or under paragraph 177EA(5)(b) of this Act; or


(b) if a dividend was made to the shareholder by an exempting entity and item 6 or 7 of the table in section 208-130 of the Income Tax Assessment Act 1997 does not apply to the dividend - any part of the dividend.

46F(3)   [Application]  

Subject to subsection (4), subsection (2) does not apply if:


(a) the shareholder is a group company in relation to the company paying the dividend in relation to the year of income in which the dividend is paid; or


(b) were the tests in section 160AFE for working out relationships between companies to apply to a particular time rather than in relation to a year of income - the shareholder would have been a group company in relation to the company paying the dividend at all times during the period of 12 months ending on the day on which the dividend was paid.

46F(4)   [Prescribed dual resident]  

Subsection (3) does not affect the application of subsection (2) to the extent that subsection (2) deals with the payment of the unfranked part of a dividend (whether or not under subparagraph (a)(i) of that subsection):


(a) to a shareholder that is a prescribed dual resident at the time the dividend is paid; or


(b) by a company that is a prescribed dual resident at the time the dividend is paid.


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