Tax Laws Amendment (2006 Measures No. 4) Act 2006 (168 of 2006)

Schedule 3   Simplified imputation system: imputation for NZ resident companies

Part 2   Consequential amendments

Income Tax Assessment Act 1936

3   At the end of subsection 128TB(1)

Add:

; or (e) the following subparagraphs are satisfied in relation to a dividend paid to the company:

(i) an FDA credit arises for the company under section 128TA in relation to the dividend;

(ii) a franking credit arises in the company's franking account because of the application of section 220-350 of the Income Tax Assessment Act 1997 in relation to the dividend.