Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:9_1:p4
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 9 cl 1 (pt 4/5)
Character Range: 205848–208566

128TC(2) of the Income Tax Assessment Act 1936 operates in relation to the *FDA declaration percentage on the basis that:
 (a) the company mentioned in that subsection is the *subsidiary member; and
 (b) the dividends were paid to shareholders in respect of *shares in the subsidiary member.

 (5) To avoid doubt, subsection 128TC(5) of the Income Tax Assessment Act 1936 operates in relation to the *head company's *FDA declaration by reference to amounts worked out on the basis described in subsection (4) of this section.

 (6) To avoid doubt, sections 128TD and 128TE of the Income Tax Assessment Act 1936 apply to the *head company in relation to an *FDA declaration made because of subsection (2) of this section, even though the shareholders and dividends mentioned in those sections applying in relation to the declaration are shareholders in, and dividends paid by, the *subsidiary member.

717‑525  Multiple FDA declarations for dividends paid on same day

 (1) This section operates if the *head company of a *consolidated group makes 2 or more *FDA declarations relating to dividends (within the meaning of Subdivision B of Division 11A of Part III of the Income Tax Assessment Act 1936) paid by *members of the group on a single day.

Note: It does not matter whether all those FDA declarations are made under section 128TC of the Income Tax Assessment Act 1936 as affected by section 717‑520 of this Act or whether one of the declarations relates to dividends actually paid by the head company.

FDA declaration percentage in each FDA declaration

 (2) The *FDA declaration percentage for each *FDA declaration must be such that the sum of the amounts worked out under subsection 128TC(2) of the Income Tax Assessment Act 1936 in relation to the FDA declarations is not greater than the *head company's *FDA surplus at the beginning of the day.

 (3) If (apart from this subsection) that sum is greater than the *head company's *FDA surplus at the beginning of the day, each of the *FDA declarations is valid but is taken always to have effect as if the *FDA declaration percentage specified in the declaration were the percentage worked out using the formula:

 (4) Subsection 128TC(5) of the Income Tax Assessment Act 1936 does not operate in relation to any of the *FDA declarations.

Penalty for statement reflecting wrong percentage

 (5) Subsection 128TE(1) of the Income Tax Assessment Act 1936 operates as if it referred to subsection (3) of this section instead of subsection 128TC(5) of that Act.

 (6) To avoid doubt, subsection (3) of this section does not prevent subsection 128TE(1) of the Income Tax Assessment Act 1936 from making the *head company liable to pay additional tax by way