INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2 - Franking surplus or deficit  

Subdivision B - General provisions on franking credits  

SECTION 160APVA   LIFE ASSURANCE COMPANIES - CREDIT REDUCING SECTION 160APY OR 160APYA DEBIT  

160APVA(1)   [Class B franking credit arises]  

If:

(a) on a particular day, a class B franking debit of a life assurance company arises under section 160APY in relation to a refund received by the company in respect of an instalment for a year of income (the ``current year of income'' ); and

(b) a notice of an original company tax assessment for the current year of income has not been served, or been taken to have been served, on the company on or before that day;

then a class B franking credit of the company worked out under subsection (2) of this section arises on that day.

160APVA(1A)   [Class C franking credit arises]  

If:

(a) on a particular day, a class C franking debit of a life assurance company arises under section 160APY in relation to a refund received by the company in respect of an instalment for a year of income (the current year of income ); and

(b) a notice of an original company tax assessment for the current year of income has not been served, or been taken to have been served, on the company on or before that day;

then a class C franking credit of the company worked out under subsection (2) of this section arises on that day.

160APVA(2)   [Amount of franking credit]  

The amount of the franking credit is equal to the adjusted amount in relation to the amount calculated for the current year of income using the formula:

where:

`` Statutory factor '' means 1.0;

Note:

Statutory factor is used and modified in section 160AQCN .

`` Preceding year's company tax '' means the company tax assessed to the company for the year of income (the ``preceding year of income'' ) that immediately preceded the current year of income;

`` Standard component of preceding year's company tax '' means so much of the company tax assessed to the company for the preceding year of income as is attributable to the standard component.

160APVA(3)   [Further class B franking credit arises]  

If:

(a) on a particular day, a class B franking debit of a life assurance company arises:

(i) under section 160APY in relation to a refund received by the company in respect of an instalment for a year of income (the ``current year of income'' ); or

(ii) under section 160APYA in relation to a refund received by the company, or an amount credited against a liability of the company, in respect of an instalment for a year of income (also the ``current year ofincome'' ); and

(b) either:

(i) before that day, a notice of an original company tax assessment for the current year of income has been served, or is taken to have been served, on the company; or

(ii) on or after that day, a notice of an original company tax assessment for the current year of income is served, or taken to be served, on the company;

then a class B franking credit of the company worked out under subsection (4) of this section arises on the later of the particular day and the day on which the notice is served or taken to be served.

160APVA(3A)   [Further class C franking credit arises]  

If:

(a) on a particular day a class C franking debit of a life assurance company arises:

(i) under section 160APY in relation to a refund received by the company in respect of an instalment for a year of income (the current year of income ); or

(ii) under section 160APYA in relation to a refund received by the company, or an amount credited against a liability of the company, in respect of an instalment for a year of income (also the current year of income ); and

(b) either:

(i) before that day, a notice of an original company tax assessment for the current year of income has been served, or is taken to have been served, on the company; or

(ii) on or after that day, a notice of an original company tax assessment for the current year of income is served, or taken to be served, on the company; and

(c) section 160AQCNCH (transitional provision for late balancing life assurance company for 1999-2000 year of income) does not apply to the class C franking debit;

then a class C franking credit of the company worked out under subsection (4) of this section arises on the later of the particular day and the day on which the notice is served or taken to be served.

160APVA(4)   [Amount of further franking credit]  

The amount of the franking credit is equal to the adjusted amount in relation to the amount calculated using the formula:

where:

``Statutory factor'' means 1.0;

Note:

Statutory factor is used and modified in section 160AQCN .

``Current year's company tax'' means the company tax assessed to the company for the current year of income;

``Standard component of current year's company tax'' means so much of the company tax assessed to the company for the current year of income as is attributable to the standard component.