Tax Laws Amendment (2004 Measures No. 6) Act 2005 (23 of 2005)

Schedule 1   Consolidation

Part 7   Source of certain distributions for allocable cost amount purposes

Income Tax Assessment Act 1997

21   After subsection 705-50(3)

Insert:

(3A) A way in which the extent to which dividends were paid out of profits that were not subject to income tax may be worked out is by:

(a) assuming that dividends were paid out of profits of income years in order from the most recent to the earliest; and

(b) assuming that, for any income year for which dividends were paid out of profits in accordance with paragraph (a), they were, to the extent they were not *franked distributions, paid out of profits of that income year that were not subject to income tax before they were paid out of such profits that were subject to income tax.