Facts
The company is an Australian resident taxpayer.
The company has two classes of shares; ordinary shares and preference shares.
The preference shares have the following characteristics: (i) any dividend distribution is dependant upon the directors determining to make a distribution; (ii) the dividend entitlements are non-cumulative; (iii) the right to dividends is in preference to other shares; (iv) the right to preferential payment of capital and unpaid dividends on winding up.
The preference shares and the ordinary shares on issue are held by resident and non-resident shareholders.
The company has a carry-forward Foreign Dividend Account (FDA) surplus.
The company wishes to pay dividends on both the ordinary shares and preferred limited voting ordinary shares.
Within each class of share, the dividend per share is proposed to be the same for both resident and non-resident shareholders.
The company wishes to be able to utilise its FDA surplus by making an FDA declaration percentage of up to 100% in relation to future dividend payments