Document ID: chunk:federal_register_of_legislation:C2025C00014:section:109y:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 109Y (pt 2/2)
Character Range: 1001472–1003235

and
 (b) amounts set off against loans that have been taken by former section 108, or section 109D or 109E, to be dividends, other than such amounts that are set off as a result of:
 (i) a dividend (being a later dividend for the purposes of section 109ZC or a subsequent dividend for the purposes of former subsection 108(2)) being paid by the company to the extent of the unfranked part of the dividend; or
 (ii) a loan, or a part of a loan, being forgiven.
 (2A) Reduce the total of the amounts worked out under paragraph (b) of the definition of non‑commercial loans in subsection (2) by the total of the unfranked parts of any dividends:
 (a) that are distributed by the company; and
 (b) to which section 109ZCA applies.
 (3) The amount of a dividend that a private company is taken under this Division to pay is worked out using the formula:

where:
provisional dividend is the amount of the dividend that the private company would be taken to pay apart from this section.
total of provisional dividends is the sum of all the dividends the private company is taken under this Division to pay at the end of the year of income apart from this section.

Requirement for private company to provide statement
 (4) If this section sets the amount of a dividend taken under this Division to be paid by a private company to an entity at the end of a year of income, the private company must give the entity a written statement as soon as possible after the end of the year of income.

What the statement must contain
 (5) The statement must set out:
 (a) the private company's distributable surplus for the year of income; and
 (b) the total amount the company would be taken under this Division to pay as dividends in the year of income apart from this section.