On 27 June 2012, the ATO issued Taxation Ruling TR 2012/5 entitled "Income tax: section 254T of the Corporations Act 2001 and the assessment and franking of dividends paid from 28 June 2010".
It was previously released in draft form as TR 2011/D8.
The 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. This includes the definition of a dividend for taxation purposes under s 6(1) of the ITAA 1936, the assessment of dividends under s 44 of the ITAA 1936, the franking of dividends under Part 3-6 of the ITAA 1997, and the circumstances in which a dividend will be paid out of profits for taxation purposes. This Ruling is not about non-share dividends or returns paid on non-equity shares.
The Ruling applies from 28 June 2010.