Private ruling: Dividend income
Published: November 2012

Ruling: The ruling concerned the following: | 1. Is the dividend received by a subsidiary member of the tax consolidated group from a non-resident company non-assessable income and non-exempt income, pursuant to section 23AJ of the Income Tax Assessment Act 1936 (ITAA 1936), of the head company of the tax consolidated group? | 2. Did CGT event G1 in section 104-135 of the Income Tax Assessment Act 1997 (ITAA 1997) happen to the head company of the tax consolidated group upon the subsidiary member of the tax consolidated group receiving the dividend from a non-resident company? | 3. Will the conduit foreign income, pursuant to Subdivision 802-A of the ITAA 1997, of the head company of the tax consolidated group increase by the amount of the dividend received by the subsidiary member of the tax consolidated group from a non-resident company? | Decisions | The Commissioner ruled that: | 1. Yes. The dividend received by a subsidiary member of the tax consolidated group from a non-resident company is non-assessable income and non-exempt income, pursuant to section 23AJ of the ITAA 1936, of the head company of the tax consolidated group. | 2. No. CGT event G1 in section 104-135 of the ITAA 1997 did not happen to the head company of the tax consolidated group upon the subsidiary member of the tax consolidated group receiving the dividend from a non-resident company. | 3. Yes. The conduit foreign income, pursuant to Subdivision 802-A of the ITAA 1997, of the head company of the tax consolidated group will increase by the amount of the dividend received by the subsidiary member of the tax consolidated group from a non-resident company.




Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.