Part C
Income
Income from equity
CD 33Payments corresponding to notional distributions of producer boards and co-operative companies
An amount paid by a statutory producer board to a person in relation to an income year is not a dividend if—
- the person was a member of the board at some time during the income year; and
- unless the Commissioner allows otherwise, the amount is calculated on the basis of the member’s share of—
- the total produce transactions of members with the board during the income year; or
- the total levies payable by members to the board for the income year; and
- the total produce transactions of members with the board during the income year; or
- the amount corresponds to a notional distribution amount treated as a dividend under section CD 13(1).
An amount paid by a co-operative company to a person in relation to an income year is not a dividend if—
- the person was a shareholder of the company at some time during the income year; and
- the amount is calculated on the basis of the shareholder’s share of the total produce transactions of shareholders with the company during the income year; and
- the amount corresponds to a notional distribution amount treated as a dividend under section CD 13(3).
An amount that is not a dividend as a result of this section is nevertheless treated as a return of capital for the purposes of the capital limitation.
Compare
- 2004 No 35 s CD 24