INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 1 - Interpretation  

SECTION 160APAAA   REDUCTION OF ADJUSTED AMOUNT  

160APAAA(1)   [Basic amount to be reduced]  

In working out the adjusted amount of an amount (the basic amount ), the basic amount is reduced by any reduction amount that arises in relation to the basic amount.

160APAAA(2)   [Reduction amount attributable to payment of tax]  

The reduction amount in relation to a basic amount that is attributable to a payment of tax is the whole, or any part, of the payment that arises as a result of the application or operation of:

(a) subsection 136AD(1) , (2) or (3) or 136AE(1), (2) or (3); or

(b) paragraph 1 or 2 of Article 9 of the Vietnamese agreement or a provision of any other double taxation agreement that corresponds to either of those paragraphs.

160APAAA(2A)   [Reduction amount where company is RSA provider]  

If the company is an RSA provider, other than one that is a life assurance company, the reduction amount in relation to a basic amount that is attributable to a payment of tax is the whole, or any part, of the payment that is attributable to the RSA business of the company.

160APAAA(3)   [Reduction amount attributable to refund or credit of tax]  

The reduction amount in relation to a basic amount that is attributable to:

(a) an amount received as a refund of a payment of tax; or

(b) an amount, in respect of a credit under section 221AZM , applied by the Commissioner against a liability of the company; or

(c) an amount applied by the Commissioner against a liability of the company; or

(d) a reduction mentioned in section 160APZ ;

is the whole, or any part, of the amount or reduction that is attributable to a payment, or a part of a payment, of tax in relation to which subsection (2) or (2A) gave rise to a reduction amount.

160APAAA(3A)   [Regulations]  

The regulations may provide for the method of calculating the amount that is attributable to the RSA business of the company.

160APAAA(3B)   [Use of an estimate by company]  

If regulations made under subsection (3A) provide for the calculation to include the use of an estimate made by the company, the regulations may also provide that a franking debit, worked out in accordance with the regulations, of a company arises at a particular time if an estimate by the company is incorrect.

160APAAA(3C)   [Reflection of company's taxable income]  

If regulations are made under subsection (3A), the regulations may also provide that a franking debit or a franking credit, worked out in accordance with the regulations, of a company arises at a particular time where it is necessary to ensure that the reductions made under this section properly reflect the amount of the taxable income of the company for a year of income that is attributable to the RSA business of the company.

160APAAA(4)   [Definitions]  

In this section:

double taxation agreement
means an agreement within the meaning of the International Tax Agreements Act 1953 .

the Vietnamese agreement
has the same meaning as in the International Tax Agreements Act 1953 .