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OZ 10: Modifying ratios for imputation credits
or “Adjusting tax credit ratios for certain dividends”
You could also call this:

“Getting tax credits when you receive dividends from companies”

This law talks about tax credits for imputation credits. Here’s what you need to know:

You might get a tax credit if you receive a dividend during a specific time period. This applies if you’re a new company tax rate person, which could be a regular company or a special type of investment company called a multi-rate PIE.

The dividend and its attached imputation credits need to have a certain ratio. This ratio should be more than 28/72 but not more than 30/70.

If you meet these conditions, you can calculate your tax credit using a simple formula. You multiply the total of the dividend and the imputation credit by 0.28.

The amount you use in this calculation includes both the imputation credit (which is part of your assessable income) and the dividend it’s attached to.

This law is designed to help adjust for changes in company tax rates and ensure you get the right amount of credit for the tax already paid on your dividend income.

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Next up: OZ 12: Tax credits for non-resident investors

or “Rules for tax credits on dividends during a special period”
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Part O Memorandum accounts
Terminating provisions

OZ 11Tax credits for imputation credits

  1. This section applies when—

  2. a person—
    1. derives a dividend in the transitional period, if the person is a new company tax rate person that is not a multi-rate PIE:
      1. derives a dividend in the period from 1 October 2010 to 31 March 2013, if the person is a new company tax rate person that is a multi-rate PIE; and
      2. the dividend, and the imputation credits attached to the dividend, have—
        1. an imputation ratio greater than 28/72 and less than or equal to 30/70; and
            2. the person is a new company tax rate person in the period for the dividend.

              1. For a ratio described in subsection (1)(b)(i), the amount of the tax credit that the person has is calculated using the formula—

                dividend and credits × 0.28.

                Where:

                • In the formula in subsection (2), dividend and credits is the amount of the imputation credit included in the person’s assessable income for the purposes of section LE 1(1) (Tax credits for imputation credits), together with the amount of dividend to which the credit is attached.

                • Repealed

                • Repealed
                Notes
                • Section OZ 11: added, on , by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                • Section OZ 11 heading: amended, on , by section 253(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11(1)(a): substituted, on , by section 18(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                • Section OZ 11(1)(b): amended, on , by section 253(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11(1)(b)(i): amended, on , by section 253(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11(1)(b)(i): amended, on , by section 18(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                • Section OZ 11(1)(b)(ii): repealed, on , by section 253(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11(1)(b)(iii): repealed, on , by section 253(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11(1)(c): amended, on , by section 18(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                • Section OZ 11(2) heading: amended, on , by section 253(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11(2): amended, on , by section 253(7) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11(2) formula: amended, on , by section 18(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                • Section OZ 11(3): replaced, on , by section 253(8) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11(4) heading: repealed, on , pursuant to section 253(9) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11(4): repealed, on , by section 253(9) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11(5) heading: repealed, on , pursuant to section 253(10) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11(5): repealed, on , by section 253(10) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11 list of defined terms combined imputation and FDP ratio: repealed, on , by section 253(11) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11 list of defined terms FDP credit: repealed, on , by section 253(11) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11 list of defined terms FDP ratio: repealed, on , by section 253(11) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section OZ 11 list of defined terms multi-rate PIE: inserted, on , by section 18(6) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                • Section OZ 11 list of defined terms new company tax rate person: inserted, on , by section 18(6) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                • Section OZ 11 compare note: repealed (with effect on 1 April 2008), on , by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).