Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017

265 Section RE 2 amended (Resident passive income)

(1)

After section RE 2(5)(f), insert:

(fb)

a dividend paid by a company and derived by another company, if the dividend is fully imputed and the paying company chooses to exclude the dividend from being resident passive income:

(2)

After section RE 2(5)(g), insert:

(gb)

an amount treated as a dividend under section CB 32C (Dividend income for first year of look-through company):

(3)

Replace section RE 2(5)(i)(i) with:

(i)

has an imputation ratio of 30/70 or more; and

(4)

In section RE 2, list of defined terms,—

(a)

delete “combined imputation and FDP ratio” and “FDP ratio”:

(b)

insert “fully imputed”.

(5)

Subsection (2) applies for the 2017–18 and later income years.