Tax Laws Amendment (2007 Measures No. 3) Act 2007 (79 of 2007)

Schedule 6   Repeal of dividend tainting rules

Income Tax Assessment Act 1997

5   Subsection 375-872(4)

Repeal the subsection, substitute:

Paragraph 202-45(e) does not apply

(4) Paragraph 202-45(e) does not apply to a payment that is taken to be a dividend under this section.

Note: Paragraph 202-45(e) provides that a distribution that is sourced, directly or indirectly, from a company’s share capital account is unfrankable.