Weekly Tax Highlights - 13th - 17th April 1998

The week in review:

Dividend streaming/Division 7A

Senate Committee Report - The Senate Economics Legislation Committee has reported on Taxation Laws Amendment Bill (No 7) 1997 (TLAB No 7). The Report outlines the major concerns raised by industry in respect of dividend streaming and distributions by private companies as well as the Government's response.

Questions in Parliament - The Assistant Treasurer has responded to a Parliamentary question concerning the anti-dividend streaming rules in TLAB No 7 and their potential application to differential dividend amounts paid to different classes of shareholders where all shareholders receive franked dividends. According to Senator Kemp, if all shareholders in a company are equally capable of using franking benefits, the proposed dividend streaming provisions will not apply.