Private ruling: Section 23AJ of the ITAA 1936
Published: March 2015
Ruling period: 1 July 2013 to 30 June 2014
Date scheme commenced: DD/MM/2013

Ruling: Q1: At the time the dividend was paid and declared on DD/MM/2013, does former section 23AJ of the Income Tax Assessment Act 1936 (ITAA 1936) apply to treat dividend paid by ForCo to AusCo as non-assessable non-exempt income in the hands of AusCo? | A1: Yes

Relevant facts and circumstances: ForCo is a foreign resident entity (ie not a Part X Australian resident). AusCo is a resident of Australia and has more than 10% voting interest in ForCo. ForCo paid a dividend to AusCo on DD/MM/2013. There was no arrangement in force at the relevant time by virtue of which any person was in a position, or become in a position, to affect the voting power of AusCo in ForCo.

Relevant legislative provisions: section 23AJ of the ITAA 1936

Reasons for decision: Summary: Applicant's factual circumstances met all of the requisite requirements of former section 23AJ of the ITAA 1936.