Disclaimer
This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1051202561792

Date of advice: 15 March 2017

Ruling

Subject: Frankable distribution

Question

Would paragraph 202-45(e) apply to a proposed dividend paid out of current year profits in circumstances where the company has an accumulated accounting loss in the prior year?

Answer

No

This ruling applies for the following periods:

1 July 20XX to 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The ruling was based on, and the Commissioner relied on, statements made by the applicant.

An Australian company requested a private ruling on the application of paragraph 202-45(e) of the Income Tax Assessment Act 1997 (ITAA 1997) to a proposed dividend paid out of current year profits in circumstances where the company has an accumulated accounting loss in the prior year.

Relevant legislative provisions

Paragraph 202-45(e) Income Tax Assessment Act 1997

Reasons for decision

The Commissioner provided the company with a private ruling that paragraph 202-45(e) of the ITAA 1997 would not apply to the proposed dividend.


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).