Qualifying companies and exempt income

Section HA 1(1)(a) of the Income Tax Act 2007 has been amended retrospectively to replace the term "tax paid" with a phrase that is consistent with the treatment of dividends paid by a qualifying company as being fully imputed or as exempt income.

The phrase "tax paid" in section HA 1(1)(a) was inconsistent with the treatment of a dividend paid by a qualifying company as exempt income. The use of the term "tax paid" might have given rise to an erroneous interpretation.

Section HA 1(1)(a) has been amended to replace the term "tax paid" with wording that is consistent with the treatment of certain dividends paid by a qualifying company as exempt income.