Tax on distributed profits: gross-up mechanism requires dividends to be increased so post-tax amount equals net distributed profits. Amendment requires that, for determining tax on distributed profits, any dividend amount reduced to arrive at net distributed profits must be increased to ... Summary
Tax on distributed profits: gross-up mechanism requires dividends to be increased so post-tax amount equals net distributed profits.
Amendment requires that, for determining tax on distributed profits, any dividend amount reduced to arrive at net distributed profits must be increased to an amount which, after reduction of the tax at the rate specified in sub-section (1), equals the net distributed profits, thereby prescribing a gross-up computation for the taxable dividend base.
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