INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2 - Franking surplus or deficit  

Subdivision CB - Franking debits of life assurance companies where relevant year of income is later than 1999-2000  

SECTION 160AQCNCC   PENALTY FOR OVERESTIMATING INCOME ATTRACTING FRANKING CREDITS  

160AQCNCC(1)   [When sum of provisional franking credits exceeds sum of final franking credits by more than 110%]  

A class C franking debit of a life assurance company arises under this subsection if:

(a) class C franking credits of the company (the provisional franking credits ) arise under subparagraph 160APVJ(1)(a)(i) in relation to the payment of PAYG instalments in respect of a year of income; and

(b) class C franking credits of the company (the final franking credits ) of the company arise under section 160APVK in relation to the payment of those PAYG instalments; and

(c) the sum of the provisional franking credits is more than 110% of the amount of the sum of the final franking credits.

The amount of the debit is equal to the difference between the sum of the provisional franking credits and the sum of the final franking credits.

160AQCNCC(2)   [Debit equal to provisional franking credit]  

A class C franking debit of a life assurance company arises under this subsection if:

(a) class C franking credits of the company (the provisional franking credits ) arise under subparagraph 160APVJ(1)(a)(i) in relation to the payment of PAYG instalments in respect of a year of income; and

(b) when the company's company tax in respect of the year of income is assessed, no class C franking credits of the company arise under section 160APVK in relation to the payment of the PAYG instalments.

The amount of the debit is equal to the amount of the provisional franking credit.

160AQCNCC(3)   [Year of income commencing before 1 July 2000]  

Subsections (1) and (2) do not apply to a company's 2000-01 year of income if it starts before 1 July 2000.

160AQCNCC(4)   [Commissioner's discretion]  

The Commissioner may, in the Commissioner's discretion, determine that:

(a) the franking debit is not to arise under this section; or

(b) the amount of the franking debit that arises under this section is to be reduced to the amount specified in the determination.

160AQCNCC(5)   [Powers]  

For the purposes of the application of subsection 33(1) of the Acts Interpretation Act 1901 to the power to make a determination under subsection (4), nothing in this Act prevents the exercise of the power at a time before the franking debit arises.