LE 6Partners in partnerships

1. This section applies when a person who has a tax credit under section LE 1 is a partner in a partnership and, through the partnership, derives a dividend with an imputation credit attached.

2. The person’s credit is limited to an amount calculated using the formula—

   $(partner\text{'}s\; income\; ÷\; partnership\; income)\times \; (partnership\; imputation\; credits\; -\; partner\text{'}s\; supplementary\; dividend).$

   Where:

3. In the formula,—

4. partner’s income is the total assessable income of the person for the tax year derived as a partner of the partnership excluding—
   1. an imputation credit attached to a dividend derived by the person:
   2. a supplementary dividend derived by the person as a non-resident partner of the partnership:
5. partnership income is the total assessable income for the tax year of all the partners of the partnership excluding—
   1. all imputation credits attached to dividends derived by the partners:
   2. all supplementary dividends derived by non-resident partners of the partnership:
6. partnership imputation credits is the total imputation credits attached to dividends and total supplementary dividends for the tax year derived by all partners of the partnership:
7. partner’s supplementary dividend is the total supplementary dividends for the tax year derived by the person as a non-resident partner of the partnership.

Compare

• 2004 No 35 s LB 1(1)(b), (4), (4A), (4B)

Notes

• Section LE 6(3)(a)(i): amended, on 1 April 2017, by section 155(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
• Section LE 6(3)(b)(i): amended, on 1 April 2017, by section 155(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
• Section LE 6 list of defined terms FDP credit: repealed, on 1 April 2017, by section 155(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).