Acceptable Distribution Policy: distribution standard for accounting periods beginning before 28 November 1995

Distribution standard for non-trading companies {#}

For non-trading companies the distribution standard was 90% of the company's available profits for accounting periods ended before 30 November 1993.

Distribution standard for trading companies {#}

For trading companies, the distribution standard was 50% of the available profits for periods beginning before 28 November 1995.

Definition of a trading company {#}

ICTA88/S756 (1)For accounting periods of controlled foreign companies beginning before 28 November 1995 the distinction between trading and non-trading companies is necessary to ascertain the appropriate distribution standard. A company is a trading company if its business consists wholly or mainly of the carrying on of a trade(s).

In most cases it is clear whether a controlled foreign company is within this definition for an accounting period.

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