Section 254T Corporations Act and the assessment and franking of dividends paid from 28 June 2010 - TR 2011/D8
24 Jan 2012
On 21 December 2011, the ATO released for public comment by 24 February 2012 draft Taxation Ruling TR 2011/D8 entitled "Income tax: Section 254T of the Corporations Act and the assessment and franking of dividends paid from 28 June 2010".
The draft Ruling is about the taxation of dividends paid in compliance with s 254T of the Corporations Act 2001 (the Corporations Act) from 28 June 2010; including the assessment of dividends under s 44 of ITAA 1936, the franking of dividends under Part 3-6 of TAA 1997, and the circumstances in which a dividend will be paid out of profits. The draft Ruling is not about non-share dividends or returns paid on non-equity shares.
As part of the process of assisting the Commissioner to formulate the views expressed in the draft Ruling, the opinion of A H Slater QC and J O Hmelnitsky of Counsel was obtained by the Commissioner. A link to the opinion can be found in the draft Ruling.