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 160APVH   LIFE ASSURANCE COMPANIES - STATUTORY FUND COMPONENT  

160APVH(1)   [Class A franking credit equal to class B franking debit]  

If, on a particular day, a class B franking debit of a life assurance company arises under any of the following provisions:

(aa) subsection 160AQCCA(1) ;

(ab) subsection 160AQCCA(3) ;

(a) subsection 160AQCD(1) ;

(b) subsection 160AQCD(3) ;

(c) subsection 160AQCE(1) ;

(d) subsection 160AQCE(3) ;

(e) section 160AQCJ ;

(f) section 160AQCK ;

(g) section 160AQCL ;

there arises on that day a class A franking credit of the company equal to the amount that would have been the amount of that class B franking debit if the assumptions set out in subsection (2) were made.

160APVH(2)   [Assumptions relating to class B franking debit]  

The assumptions are as follows:

(a) the assumption that the class B franking debit had been calculated using a statutory factor of 0.2 instead of 1.0;

(b) the assumption that the class B franking debit had been calculated by reference to the special life company tax rate for the year of tax concerned instead of by reference to the general company tax rate for the year of tax concerned;

(c) the assumption that the reference to standard component in the provision concerned were a reference to general fund component.

160APVH(3)   [Notice of assessment served]  

If:

(a) on a particular day, a class A franking debit of a company arises under subsection 160AQCN(1) because of paragraph (aa) or (c) of that subsection, or under subsection 160AQCN(2AA) because of paragraph (a) of that subsection, in relation to an amount received as a refund in relation to a year of income; and

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

there arises, on the day on which the notice is served or deemed to be served, a class A franking credit of the company equal to the amount of the class A franking debit.

160APVH(4)   [Class A franking credit equal to class C franking debit]  

If, on a particular day, a class C franking debit of a life assurance company arises under any of the following provisions:

(a) subsection 160AQCCA(1A) ;

(b) subsection 160AQCCA(3A) ;

(c) section 160AQCK ;

(d) section 160AQCL ;

there arises on that day a class A franking credit of the company equal to the amount that would have been the amount of that class C franking debit if the assumptions set out in subsection (5) were made.

160APVH(5)   [Assumptions relating to class C franking debit]  

The assumptions are as follows:

(a) the assumption that the class C franking debit had been calculated using a statutory factor of 0.2 instead of 1.0;

(b) the assumption that the class C franking debit had been calculated by reference to the special life company tax rate for the year of tax concerned instead of by reference to the general company tax rate for the year of tax concerned;

(c) the assumption that the reference to standard component in the provision concerned were a reference to general fund component.