Taxation Laws Amendment Act (No. 2) 1999 (93 of 1999)

Schedule 5   Franking of dividends by exempting companies and former exempting companies

Income Tax Assessment Act 1936

73   Subsection 221YHZC(1B)

Repeal the subsection, substitute:

(1B) Subsection (1A) does not apply in relation to income paid in respect of a share investment if the income is paid as a dividend that has been franked in accordance with section 160AQF or 160AQFA and:

(a) the franking percentage (within the meaning of section 160APA), if any, in relation to the dividend is 100%; and

(b) if the dividend is an exempted dividend - the sum of the exempted amount and the franked amount (if any) is equal to the amount of the dividend.