Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Bill

  • enacted
86 New section LE 8B inserted (Dividends from certain FIF interests)
  • After section LE 8, insert:

    LE 8B Dividends from certain FIF interests
    • When this section applies

      (1) This section applies when a person has assessable income for the purposes of section LE 1 because section LE 1(4B) applies (the LE 1(4B) income), and the LE 1(4B) income includes an imputation credit.

      Tax credit limited

      (2) The person's tax credit for the imputation credit is limited to the lesser of the imputation credit and the following amount:

      imputation ratio× FIF income.
      Definition of items in formula

      (3) In the formula,—

      • (a) imputation ratio is the imputation ratio referred to in section OB 60 (Imputation credits attached to dividends) if the relevant amount of LE 1(4B) income is treated as a dividend, and the imputation credit is attached to it.

      • (b) FIF income is the person's FIF income for the income year in which the imputation credit is received, to the extent to which the FIF income is for the attributing interest for which the imputation credit is received.

      Defined in this Act: assessable income, attributing interest, dividend, FIF income, imputation credit, imputation ratio, income year, tax credit.