Private ruling: Frankable distribution
Date of advice: 15 March 2017
Published: August 2017
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

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: The ruling was based on, and the Commissioner relied on, statements made by the applicant. 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) 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.