Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p61
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 61/79)
Character Range: 2354471–2357064

if the company pays a dividend or non‑share dividend to the person.

Distribution of capital
 (2) A company distributes capital of the company to a person if:
 (a) it pays or credits money, or transfers property, of the company to the person, where the amount paid or credited, or the amount or value of the property, is debited against an amount standing to the credit of the share capital account of the company; and
 (b) the payment, crediting or transfer is not the payment of a dividend.
 (3) A company distributes capital of the company to a person if the company makes a non‑share capital return to the person.

272‑55  Partnership distribution to partner
  A partnership distributes income or capital of the partnership to a person if it:
 (a) pays or credits the income or capital in the form of money to the person; or
 (b) transfers the income or capital in the form of property to the person; or
 (c) reinvests or otherwise deals with the income or capital on behalf of the person or in accordance with the directions of the person; or
 (d) applies the income or capital for the benefit of the person;
in the person's capacity as a partner in the partnership.

272‑60  Other distributions of income and capital
 (1) A company, partnership or trust (an entity) also distributes income or capital to a person in circumstances not covered by section 272‑45, 272‑50 or 272‑55 if it:
 (a) pays (including by way of a loan) or credits money of the entity to the person, or reinvests such money for the person; or
 (b) transfers property of the entity to, or allows use of property of the entity by, the person; or
 (c) deals with money or property of the entity for or on behalf of the person or as the person directs; or
 (d) applies money or property of the entity for the benefit of the person; or
 (e) extinguishes, forgives, releases or waives a debt or other liability owed by the person to the entity.

Limit on distributions
 (2) However, subsection (1) only applies if, and to the extent that:
 (a) the amount paid, credited, reinvested or applied, the value of the property transferred, or the value of the other thing done;
exceeds:
 (b) the amount or value of any consideration given in return.

Character of distributions
 (3) Each thing that is a distribution because of subsection (1) is a distribution of income unless it is clear that the money or property concerned was capital, or that the debt or liability was attributable to capital, of the entity.

272‑63  Distribute indirectly
  A trust distributes income or capital indirectly to an individual if it distributes