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Edited version of private advice
Authorisation Number: 1051793542490
Date of advice: 24 December 2020
Ruling
Subject: Dividends paid to non-resident
Question
Are you assessable on dividends received as distributions from a trust while you were a non-resident of Australia for taxation purposes?
Answer
No, the dividends received will be subject to the withholding tax provisions
• Franked dividends - the franked dividends you are paid are exempt from Australian income and withholding taxes. However, you are not entitled to any franking tax offset for the franking credit. You cannot use any franking credit attached to franked dividends to reduce the amount of tax payable on other Australian income and you cannot get a refund of the franking credit.
• Unfranked dividends - You are not required to declare Australian unfranked dividend income if the correct amount of non-resident withholding tax has been withheld from the income before it is paid or credited to you.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
For the period in question you were non-residents of Australia.
During this period you received distributions as a beneficiary of an Australian Trust(s).
These distributions were made in the normal course of operation of the trusts.
Some of the distributions consisted of Franked Dividends from Australian companies.
Relevant legislative provisions
Income Tax Assessment Act 1997 - Section 6-5
Income Tax Assessment Act 1997 - Section 6-10
Income Tax Assessment Act 1997 - Section 10-5
Income Tax Assessment Act 1997 - Section 11-55
Income tax Assessment Act 1936 - Sub paragraph 44(1)(b)(i)
Income tax Assessment Act 1936 - Subsection 128B(1)
Income tax Assessment Act 1936 - Subsection 128B(2)
Income tax Assessment Act 1936 - Paragraph 128B(3)(ga)
Income tax Assessment Act 1936 - Subsection 128B(4)
Income tax Assessment Act 1936 - Subsection 128B(5)
Income tax Assessment Act 1936 - Section 128D
Income Tax (Dividends, Interest and Royalties Withholding Tax) Act 1974 - Section 7
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