The following best describes income from dividends:
Question 19 options:
a)
Dividends are ordinary income under s6-5 of the ITAA1997, however they are also made specifically assessable as statutory income under s44 of the ITAA1936. Because of s6-25 of the ITAA1997 this specific statutory provision has precedence over the general provision.
b)
Dividends are not assessable income as tax has already been paid by the company whom they are being paid from.
c)
Dividends from public companies must be reported as it is ordinary and statutory income and the ATO is able to data match it, but income from private companies does not need to be reported as the recipient typically owns and controls the company.
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