Private ruling: Frankable distribution
Date of advice: 2 May 2016
Published: June 2016

Ruling: Q1: Would paragraph 202-45(e) apply to a proposed dividend paid out of current year profits in circumstances where the company has an accumulated accounting loss in the prior year? | A1: No

Relevant facts and circumstances: An Australian company requested a private ruling on the application of paragraph 202-45(e) of the Income Tax Assessment Act 1997 (ITAA 1997) to a proposed dividend paid out of current year profits in circumstances where the company has an accumulated accounting loss in the prior year.

Relevant legislative provisions: Paragraph 202-45(e) of the Income Tax Assessment Act 1997

Reasons for decision: Summary: The Commissioner provided the company with a private ruling that paragraph 202-45(e) of the ITAA 1997 would not apply to the proposed dividend.

Subject: Frankable distribution: In order to protect the privacy and commercial in-confidence components of this private binding ruling the following summary is provided.