Financial Sector Legislation Amendment (Restructures) Act 2007 (117 of 2007)

Schedule 2   Restructure relief: taxation aspects

Income Tax Assessment Act 1997

2   At the end of Subdivision 202-C of Division 202

Add:

202-47 Distributions of certain ADI profits following restructure

(1) This section applies to an amount paid by a body corporate if:

(a) the body corporate is a non-operating holding company within the meaning of the Financial Sector (Business Transfer and Group Restructure) Act 1999; and

(b) a restructure instrument under Part 4A of that Act is in force in relation to the body; and

(c) because of the restructure to which the instrument relates, an *ADI becomes a subsidiary (within the meaning of that Act) of the body; and

(d) the amount is sourced, directly or indirectly, from the profits of the ADI before the restructure instrument came into force; and

(e) the amount would have been a *frankable distribution if it had been distributed by the ADI before the restructure instrument came into force.

(2) The amount:

(a) is taken to be a dividend paid by the body, for the purposes of this Act (and so is a *distribution by the body); and

(b) is not taken to be an *unfrankable distribution by the body just because of paragraph 202-45(e) (which makes distributions from *share capital accounts unfrankable).