Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 205 - Franking accounts  

SECTION 205-20   A late balancing company may elect to have its FDT liability determined on 30 June  

205-20(1)    
This section applies after 30 June 2002.

205-20(2)    
A corporate tax entity's liability to pay franking deficit tax is determined under sections 205-25 and 205-30 of this Act (the transitional provisions ), and not under sections 205-45 and 205-50 of the Income Tax Assessment Act 1997 (the ongoing provisions ), if:

(a) the entity was in existence at the end of 30 June 2002; and

(b) the entity's 2001-02 income year ends after 30 June 2002; and

(c) the entity makes a valid election to have its liability to pay franking deficit tax determined under the transitional provisions.

205-20(3)    
The entity makes a valid election to have its liability to pay franking deficit tax determined under the transitional provisions if:

(a) the election is in writing; and

(b) the election is made on the day on which liability for franking deficit tax would be determined under those provisions, or earlier than that day but in the income year in which that day occurs; and

(c) the entity's liability to pay franking deficit tax has not previously been determined under the ongoing provisions.