OB 75Statutory producer boards’ notional distributions that are dividends

1. A notional distribution to which section OB 74 applies that has an imputation credit attached is a dividend under section CD 13 (Notional distributions of producer boards and co-operative companies) derived by a member.

2. The amount of the dividend is calculated using the formula—

   $(credit\; attached\; ÷\; tax\; rate)\; -\; credit\; attached.$

   Where:

3. In the formula,—

4. credit attached is the amount of imputation credit attached to the member’s distribution:
5. tax rate is the basic rate of income tax for companies set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) for the income year.

6. The member derives the dividend on the date the statutory producer board chooses under section OB 74 to make a notional distribution.

7. For the purposes of this section, the producer board must—

8. include the details of the dividend with the return of income filed for the tax year corresponding to the income year in relation to which the distribution was made; and
9. retain relevant information to enable the Commissioner to determine whether a later distribution is not a dividend under section CD 26(3) or CD 33(1) (which relate to capital distributions on liquidation or emigration and payments that correspond to notional distributions).

10. Section OZ 15 (Attaching imputation credits and notional distributions: modifying amounts) may apply to modify subsection (2).