INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 7 - Private companies  

SECTION 103   INTERPRETATION  

103(1)  

special fund dividends
, in relation to a private company, means dividends or parts of dividends paid by the private company, being dividends or parts of dividends that are by virtue of section 24F , 24G or 107 , excluded from the assessable income of the shareholders.

the distributable income
, in relation to a private company, means the amount ascertained by deducting from the taxable income of the company -

(a) the tax payable under this Act before the allowance of any rebate under section 16 of the Income Tax (International Agreements) Act 1953-1968 (other than the tax payable under this Division or under the repealed section 136A ) in respect of the income of the year of income;

(b) taxes which are paid in the year of income being -

(i) tax paid under Division 7 of the Income Tax Assessment Act 1936 or of that Act as amended, or contribution paid under the Social Services Contribution Assessment Act 1945 or that Act as amended, in respect of income derived by the company during a year of income prior to the year of income that commenced on 1 July 1947;

(ii) taxes paid under a law of a State or of an internal Territory imposing a tax upon income derived by the company (not being a tax imposed upon undistributed income); or

(iii) taxes paid in a country or place outside Australia in respect of income derived by the company which is or was assessable income under this Act or the previous Act,

less any refund received in the year of income of any tax or contribution specified in subparagraph (i), (ii) or (iii) of this paragraph which has been deducted or is deductible for the purpose of ascertaining the distributable income of any year under this Division or under the Division for which this Division was substituted; and

(c) the amount of any net loss, except to the extent to which it is a loss of a capital nature, incurred by the company in the year of income in carrying on business out of Australia.

the prescribed period
means the period of one year commencing 2 months before the end of the year of income.

the reduced distributable income
, in relation to a private company means the distributable income of that company reduced by so much of the amount of any income derived from property as is included in the distributable income.

the retention allowance
, in relation to the distributable income of a private company of a year of income, means the retention allowance ascertained in accordance with section 105B in respect of that distributable income.

the undistributed amount
, in relation to a private company, means the amount remaining after deducting from the distributable income the sum of the retention allowance and the dividends (other than special fund dividends, prescribed dividends, dividends to which subsection 105A(3) applies and dividends that, by virtue of subsection 105A(4AA) , subsections 105A(5) to (11) , inclusive, or section 105AAA , are not to be taken into account in ascertaining whether the company is deemed to have made a sufficient distribution in relation to the year of income) paid by the company within the prescribed period.

103(1A)   [Taxable income of private company]  

For the purposes of the application of the definition of the distributable income in subsection (1) in relation to a private company in relation to a year of income, the reference in that definition to the taxable income of the private company shall (other than for the purposes of references in that definition to the tax payable by the private company) be read as a reference to the amount that, if Division 16E were disregarded, would be the taxable income of the private company of the year of income.