Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 205 - Franking accounts  

SECTION 205-75   Working out the tax offset for the first income year  

First income year and relevant liabilities

205-75(1)    
This section applies to a corporate tax entity in relation to:

(a) this income year of the entity (the first income year ):

(i) the 2001-2002 income year if subsection 205-70(2) applies to the entity; or

(ii) the 2002-2003 income year if subsection 205-70(2) does not apply to the entity; and

(b) amounts of liabilities incurred by the entity (the relevant liabilities ) that:

(i) are covered by paragraph (1)(a) of former section 160AQK or of former section 160AQKAA (as appropriate) of the Income Tax Assessment Act 1936 ; and

(ii) have not been applied under that Act to reduce the entity's income tax liabilities for an earlier income year.

Relevant liabilities carried forward to the first income year

205-75(2)    
Section 205-70 of the Income Tax Assessment Act 1997 has effect in relation to the entity as if:

(a) so much of the relevant liabilities as were incurred by the entity during the first income year were liabilities to pay franking deficit tax under that Act; and

(b) so much of the relevant liabilities as were incurred by the entity before the start of the first income year were the excess mentioned in paragraph (1)(c) of that section.

205-75(3)    
Subsection (2) has effect only for the purposes of working out:

(a) whether or not the entity is entitled to a tax offset under section 205-70 of the Income Tax Assessment Act 1997 for the first income year or a later income year; and

(b) the amount of that tax offset.