Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 202 - Franking a distribution  

Subdivision 202-C - Which distributions can be franked?  

Operative provisions

SECTION 202-47   Distributions of certain ADI profits following restructure  

202-47(1)    
This section applies to an amount paid by a body corporate if:

(a) the body corporate is a non-operating holding company within the meaning of the Financial Sector (Transfer and Restructure) Act 1999 ; and

(b) a restructure instrument under Part 4A of that Act is in force in relation to the body; and

(c) because of the restructure to which the instrument relates, an *ADI becomes a subsidiary (within the meaning of that Act) of the body; and

(d) the amount is sourced, directly or indirectly, from the profits of the ADI before the restructure instrument came into force; and

(e) the amount would have been a *frankable distribution if it had been distributed by the ADI before the restructure instrument came into force.

202-47(2)    
The amount:

(a) is taken to be a dividend paid by the body, for the purposes of this Act (and so is a *distribution by the body); and

(b) is not taken to be an *unfrankable distribution by the body just because of paragraph 202-45(e) (which makes distributions from *share capital accounts unfrankable).