Commentary on Sections Overview Overview Section 16: Savings and dividend income to be treated as highest part of total income
61.This section provides the ordering rules that determine at what rate a particular type of income would be charged but for the sections imposing the savings rate or the dividend rates. It is based on section 1A(5) of ICTA.
62.Subsection (2) says that the rules apply for all other income tax purposes as well, except in the cases mentioned.
63.Subsections (3) to (5) contain the ordering rules. In essence, dividend income is the top part of income, savings income the middle part, and other income the lowest part.
64.Subsection (6) is a signpost to section 1012 which deals with the relationship between the rules in this section and other rules requiring particular income to be treated as the highest part.
65.Subsection (7) ensures that dividend income charged on the remittance basis does not count as dividend income for the purposes of this section.