Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (NO. 4) 1997 NO. 174 OF 1997 - SCHEDULE 2--Finance

Income Tax Assessment Act 1936

1 Paragraph 160AFB(4)(a)

After "shares", insert "(other than eligible finance shares or widely distributed finance shares within the meaning of Part X)".

2 At the end of section 160AO

Add:

(3) Notwithstanding anything in this Act or in the International Tax Agreements Act 1953 , where a credit is allowable to a taxpayer in respect of an eligible finance share dividend or widely distributed finance share dividend (within the meaning of Part X), that credit must not exceed the amount of tax paid by the taxpayer to a foreign country in respect of that dividend.

(4) In subsection (3), tax paid by the taxpayer does not include tax that is deemed by section 160AFC to have been paid by the taxpayer.

3 Section 317 (definition of non-portfolio dividend )

After "a dividend" insert "(other than an eligible finance share dividend or a widely distributed finance share dividend)".

4 Paragraph 402(2)(c)

Omit "a widely distributed finance share dividend or".

5 Paragraph 402(2)(d)

Omit "a widely distributed finance share dividend or".

6 Application

The amendments made by this Schedule apply in relation to dividends paid on or after 3 February 1997.