Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 219 - Imputation for life insurance companies  

SECTION 219-45   Reversing (on tax paid basis) certain franking debits that arose before 1 July 2002  

219-45(1)    
This section applies if:

(a) a franking debit arose before 1 July 2002 in the franking account of a life insurance company under former section 160AQCNCE of the Income Tax Assessment Act 1936 in relation to a PAYG instalment variation credit in respect of an income year; and

(b) the company's assessment day (the assessment day ) for that income year occurs on or after 1 July 2002; and

(c) the company has a franking account (the new franking account ) under section 205-10 of the Income Tax Assessment Act 1997 .

219-45(2)    
A franking credit of the amount worked out in accordance with the following formula is taken to have arisen in the new franking account on 1 July 2002:

Amount of the 1936 Act debit     ×

30 70

where:

amount of the 1936 Act debit
means the amount of the franking debit mentioned in paragraph (1)(a).

Note:

As the effects of former sections 160AQCNCE and 160APVN of the Income Tax Assessment Act 1936 are not duplicated in the Income Tax Assessment Act 1997 , this section ensures that a debit arising under former section 160AQCNCE before 1 July 2002 is reversed on a tax paid basis on that date if it has not been reversed under former section 160APVN before that date.