Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Income from equity

CD 29C: Transfers to shareholders by ASX-listed Australian company of shares in subsidiary

You could also call this:

“Australian company giving shares in its subsidiary to shareholders may not be taxed as a dividend”

When a company listed on the Australian Stock Exchange (ASX) transfers shares in a subsidiary to its shareholders, it might not count as a dividend. This is only true if the transfer of company value isn’t considered a dividend under [section ED 2B(7)]. In simple terms, if an Australian company gives you shares in another company it owns, you might not have to pay tax on it as if it were a dividend.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS31553.

Topics:
Money and consumer rights > Taxes
Previous

CD 29B: Issues to shareholders of rights to subscribe for or sell back shares, or

“Rights to buy or sell back company shares aren't counted as dividends”

Next

CD 30: Transfer by unit trust of legal interest after beneficial interest vests, or

“Unit trust transfers legal ownership without additional tax on previously taxed dividends”

Part C Income
Income from equity

CD 29CTransfers to shareholders by ASX-listed Australian company of shares in subsidiary

  1. A transfer of company value is not a dividend to the extent to which it is a transfer of value that is not a dividend under section ED 2B(7) (Transfers to shareholders by ASX-listed Australian company of shares in subsidiary).

Notes
  • Section CD 29C: replaced (with effect on 1 April 2016), on , by section 131(1) (and see section 131(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
  • Section CD 29C: amended, on , by section 92(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
  • Section CD 29C list of defined terms transfer of company value: inserted, on , by section 92(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
  • Section CD 29C list of defined terms transfer of value: repealed, on , by section 92(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).