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Edited version of your written advice
Authorisation Number: 1012780278348
Ruling
Subject: Section 23AJ of the ITAA 1936
Question 1
At the time the dividend was paid and declared on DD/MM/2013, does former section 23AJ of the Income Tax Assessment Act 1936 (ITAA 1936) apply to treat dividend paid by ForCo to AusCo as non-assessable non-exempt income in the hands of AusCo?
Answer
Yes
This ruling applies for the following periods:
1 July 2013 to 30 June 2014
The scheme commences on:
DD/MM/2013
Relevant facts and circumstances
ForCo is a foreign resident entity (ie not a Part X Australian resident). AusCo is a resident of Australia and has more than 10% voting interest in ForCo. ForCo paid a dividend to AusCo on DD/MM/2013. There was no arrangement in force at the relevant time by virtue of which any person was in a position, or become in a position, to affect the voting power of AusCo in ForCo.
Relevant legislative provisions
section 23AJ of the ITAA 1936
Reasons for decision
Applicant's factual circumstances met all of the requisite requirements of former section 23AJ of the ITAA 1936.