Document ID: chunk:federal_register_of_legislation:C2016C00969:section:7:p6
Version: federal_register_of_legislation:C2016C00969
Segment Type: section
Provision Reference: s 7 (pt 6/7)
Character Range: 41431–43981

relates (whether or not the company existed at that time), out of profits derived by the company from sources in Australia; and
 (C) the dividend shall be deemed not to be a dividend to which subsection 44(2) of the Assessment Act applies;
 (c) the trustee in relation to whom the relevant taxable amount exists is not liable, and shall be deemed never to have been liable, to pay trust recoupment tax on the relevant taxable amount;
 (d) any secondary taxable amount derived from the relevant taxable amount shall be deemed not to exist and never to have existed.
 (8) Subject to subsection (9), where a request made under subsection (2) in relation to an elected taxable amount that exists in relation to a company is granted by the Commissioner, the following provisions have effect:
 (a) a company taxable amount shall be taken to exist in relation to the company, in relation to the year of income in relation to which the elected taxable amount exists, of an amount equal to the elected taxable amount;
 (b) for the purposes of the application of the Assessment Act, other than Division 7 of Part III, in relation to each person making the request:
 (i) the company shall be deemed to have paid to the person, as a shareholder in the company, a dividend of an amount equal to the amount specified in the request under paragraph (4)(d) in relation to the person;
 (ii) the dividend shall be deemed to have been paid by the company, on the last day of the year of income to which the elected taxable amount relates (whether or not the company existed at that time), out of profits derived by the company from sources in Australia; and
 (iii) the dividend shall be deemed not to be a dividend to which subsection 44(2) of the Assessment Act applies;
 (c) the company is not liable, and shall be deemed never to have been liable, to pay trust recoupment tax on the elected taxable amount.
 (9) Where:
 (a) a request made under this section in relation to a taxable amount is granted by the Commissioner; and
 (b) after the request is granted, the taxable amount is increased or reduced;
subsections (7) and (8) have effect in relation to the request as if:
 (c) the request had been made in relation to the increased or reduced taxable amount;
 (d) the request had been made by such persons as the Commissioner determines, being some or all of:
 (i) the persons who, but for subsections (3) and (5), would have been required to make the request;
 (ii) the persons who, by virtue of subsection (3), could have been permitted to make the request; and