13 November 1997

Dividend Imputation: General Anti-Avoidance Rule and Anti-Streaming Measures

The Assistant Treasurer, Senator Rod Kemp, released today a draft of proposed amendments to the Income Tax Assessment Act 1936. These amendments will introduce a general anti-avoidance rule to prevent schemes from obtaining a tax advantage in relation to franking credits, and insert further measures to prevent the streaming of dividends.

These amendments form part of a package of measures announced in the 1997-98 Budget targeting franking credit trading and dividend streaming, and will be introduced into Parliament in the next available taxation laws amendment Bill. The remaining measures will be introduced as soon as possible.

The draft provisions, with an explanatory statement, are available by phoning (02) 6216 1036 or by accessing the ATO's World Wide Web page at http://www.ato.gov.au

CANBERRA
13 November, 1997

Contact:
Australian Taxation Office
Simon Matthews (02) 6216 1523