16No double counting of attributed income—other distributions by a company

16 No double counting of attributed income—other distributions by a company

(1) This section applies if:

(a) during a particular derivation period of a company, an individual receives a distribution of capital or profits from the company (the distribution); and

(b) the individual is an attributable stakeholder of the company during an attribution period that corresponds with the derivation period of the company; and

(c) the distribution is made in circumstances other than those mentioned in section 14 and paragraphs 15(1)(c) and (d); and

(d) the individual is taken to receive additional ordinary income during that attribution period in accordance with subsection 52ZZK(1) of the Act.

(2) For paragraph 52ZZL(1)(d) of the Act, if the amount of the distribution is less than, or equal to, the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include the amount of that distribution.

(3) For paragraph 52ZZL(1)(e) of the Act, if the amount of the distribution exceeds the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act during the attribution period, the Commission must consider determining that the ordinary income of the individual received during that period does not include so much of the amount of the distribution that equals the additional ordinary income that the individual is taken to receive in accordance with subsection 52ZZK(1) of the Act.