Document ID: chunk:federal_register_of_legislation:C2004A00658:clause:2_3
Version: federal_register_of_legislation:C2004A00658
Segment Type: clause
Provision Reference: sch 2 cl 3
Character Range: 3570–5008

3  After section 375‑870
Insert (before the group heading):

375‑872  Distribution of FLIC concessional capital is instead taken to be a dividend

 (1) For the purposes of this Act, an amount that a *FLIC pays to you by way of distribution of *FLIC concessional capital, on a liquidation or a share buy back or other return of capital, is instead taken to be a dividend that the FLIC pays to you out of profits the FLIC derived from sources in Australia.

Dividend cannot exceed amount of deductions

 (2) Subsection (1) does not apply to the extent that the total of the payments the *FLIC makes by way of such distribution of *FLIC concessional capital in respect of particular *shares exceeds the total of the deductions under section 375‑855 for the shares (whether it was you or a previous owner of the shares who got the deductions).

FLIC must comply with Corporations Law rules about dividends

 (3) Subsection (1) applies only if the requirements of the Corporations Law (except section 254T) relating to declaring and paying a *dividend are satisfied (as well as any requirements relating to the distribution).

Inter‑corporate rebate not denied by sections 46G to 46M

 (4) Sections 46G to 46M of the Income Tax Assessment Act 1936 do not apply to a payment that is taken to be a dividend under this section.

Note: Those sections might otherwise reduce or deny a rebate under section 46 or 46A of that Act in some cases.