Income Tax Assessment Act 1936
(a) the purchase price; and
(b) the part (if any) of the purchase price in respect of the buy-back of the share or non-share equity interest which is debited against amounts standing to the credit of:
(i) the company's share capital account if it is a share that is bought back; or
(ii) the company's share capital account or non-share capital account if it is a non-share equity interest that is bought back;
is taken to be a dividend paid by the company:
(c) to the seller as a shareholder in the company; and
(d) out of profits derived by the company; and
(e) on the day the buy-back occurs.
If the dividend is included to any extent in the seller's assessable income of any year of income, it is not taken into account to that extent under section 118-20 of the Income Tax Assessment Act 1997 .
The remainder of the purchase price is taken not to be a dividend for the purposes of this Act.159GZZZP(3)
(Omitted by No 170 of 1995)