Income tax Dates
You'll need the following information to do the calculation:
- company's net total income for the company's income year
- total dividends paid to you by the company for the company's income year
- voting interests held in the company on the last day of the income year by you
- total number of company shares on the last day of the income year.
Calculation for your attributed income
(your voting interests ÷ total voting interests) × (company's total income − dividends) = attributed income
Dividends are the total amount, not exceeding the company income, of dividends paid by the company to you for the income year.
If there are multiple companies
If you're a major shareholder in more than 1 close company, you'll need to do separate calculations for each company and combine the attributed income amounts.
You should also leave out any fixed-rate shares from the calculations.
Jasmine receives Working for Families for her 2 children and holds 60,000 of the 100,000 voting interests in the company.
The company made a profit of $90,000 and did not pay any dividends.
Jasmine's attributed income calculation for her shares
(60,000 ÷ 100,000) × ($90,000 − $0) = $54,000 attributed income
Renee receives Working for Families payments. She holds 25% of the voting interests in a private company with 2 other shareholders.
The company made a profit of $200,000 and paid dividends to Renee of $12,500.
Renee's attributed income calculation
(25% × $200,0000) − $12,000 = $37,500