FDP credits derived by person receiving exempt dividend

Amendment ensures that foreign dividend payment credits attached to dividends that are exempt income of the shareholder are refundable. Applies from 2008-09.

Section 108 of the Taxation (GST and Remedial Matters) Act 2010

The Rewrite Advisory Panel has concluded that section LF 8(1) does not permit a person who derives dividends as exempt income to obtain a refund of a foreign dividend payment (FDP) credit. The corresponding provision in the 2004 Act permitted a person deriving dividends as exempt income to obtain a refund of FDP paid on the exempt dividend.

Key features

The amendment ensures that FDP credits attached to dividends that are exempt income of the shareholder are refundable to that shareholder.

Application date

The amendment applies from the beginning of the 2008-09 income year.