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Edited version of your written advice
Authorisation Number: 1013006234503
Date of advice: 2 May 2016
Ruling
Subject: Frankable distribution
In order to protect the privacy and commercial in-confidence components of this private binding ruling the following summary is provided.
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
Relevant facts and circumstances
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) of the 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.