INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2H - DEMUTUALISATION OF MUTUAL ENTITIES OTHER THAN INSURANCE COMPANIES AND HEALTH INSURERS  

Division 326 - DEMUTUALISATION  

Subdivision 326-L - CGT consequences of payment to member of demutualised entity out of accumulated surplus of the entity  

SECTION 326-225   326-225   PAYMENT OUT OF ASSETS OF DEMUTUALISED ENTITY THAT IS NOT INCLUDED IN ASSESSABLE INCOME IS TAKEN NOT TO BE A DIVIDEND  


If:


(a) a payment out of the assets of a demutualised entity is made to a taxpayer who holds shares or an interest in shares in the entity; and


(b) the amount paid is a dividend that is not included in the taxpayer ' s assessable income;

the payment is taken, for the purposes of section 104-135 of the Income Tax Assessment Act 1997 , not to be the payment of a dividend.


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