sec.660Payment of dividends

### sec.660 Payment of dividends On or after 1 May, but before 16 May, of each financial year, a category 1 water authority must recommend to the Minister that it pay a specified dividend, or not pay a dividend, to the State for the financial year. The recommendation must be accompanied by— the authority’s estimate of the authority’s profits (the estimated profits ) for the financial year, after provision has been made for income tax or its equivalent; and if the authority has made any adjustment to the estimated profits in making the recommendation—a statement of the amount of, and reason for, each adjustment. exclusion of an amount for unrealised capital gains from upwards revaluation of non-current assets Before the end of the financial year, the Minister must either— approve the recommendation; or direct the payment to the State of a specified dividend or a dividend different from the specified dividend mentioned in the recommendation. The dividend for a financial year must not exceed the authority’s profits, after— provision has been made for income tax or its equivalent; and any unrealised capital gains from upwards revaluation of non-current assets have been excluded. The dividend must be paid within 6 months after the end of the financial year or any further period the Minister allows. The Minister must cause a copy of a direction given under subsection (3) (b) to be published in the gazette within 15 business days after the direction is given. s 660 amd 2014 No. 51 s 24 (sec.660-ssec.1) On or after 1 May, but before 16 May, of each financial year, a category 1 water authority must recommend to the Minister that it pay a specified dividend, or not pay a dividend, to the State for the financial year. (sec.660-ssec.2) The recommendation must be accompanied by— the authority’s estimate of the authority’s profits (the estimated profits ) for the financial year, after provision has been made for income tax or its equivalent; and if the authority has made any adjustment to the estimated profits in making the recommendation—a statement of the amount of, and reason for, each adjustment. exclusion of an amount for unrealised capital gains from upwards revaluation of non-current assets (sec.660-ssec.3) Before the end of the financial year, the Minister must either— approve the recommendation; or direct the payment to the State of a specified dividend or a dividend different from the specified dividend mentioned in the recommendation. (sec.660-ssec.4) The dividend for a financial year must not exceed the authority’s profits, after— provision has been made for income tax or its equivalent; and any unrealised capital gains from upwards revaluation of non-current assets have been excluded. (sec.660-ssec.5) The dividend must be paid within 6 months after the end of the financial year or any further period the Minister allows. (sec.660-ssec.6) The Minister must cause a copy of a direction given under subsection (3) (b) to be published in the gazette within 15 business days after the direction is given. - (a) the authority’s estimate of the authority’s profits (the estimated profits ) for the financial year, after provision has been made for income tax or its equivalent; and - (b) if the authority has made any adjustment to the estimated profits in making the recommendation—a statement of the amount of, and reason for, each adjustment. Example of an adjustment to estimated profits— exclusion of an amount for unrealised capital gains from upwards revaluation of non-current assets - (a) approve the recommendation; or - (b) direct the payment to the State of a specified dividend or a dividend different from the specified dividend mentioned in the recommendation. - (a) provision has been made for income tax or its equivalent; and - (b) any unrealised capital gains from upwards revaluation of non-current assets have been excluded.