INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2 - Franking surplus or deficit  

Subdivision C - General provisions on franking debits  

SECTION 160APYBB  

160APYBB   FOREIGN TAX CREDITS - ACTUAL PAYMENT OR APPLICATION AGAINST NON-FRANKING CREDIT LIABILITIES  
If:

(a) a company receives a payment of a foreign tax credit under subsection 160AN(1) ; or

(b) a foreign tax credit to which a company is entitled is applied by the Commissioner under Division 3 of Part IIB of the Taxation Administration Act 1953 against a liability of the company other than:

(i) a liability for company tax in respect of an eligible year of income; or

(ii) a liability under Division 1B or 1C of Part VI; or

(iia) a liability for a PAYG instalment; or

(iii) a liability under subsection 160AN(5) ; or

(iv) a liability under section 160AQR ;

there arises, on the day on which the payment is made, or on the day on which that credit is applied, as the case may be, whichever of the following is applicable:

(c) if the foreign tax credit was allowable in respect of tax paid or payable by the company in respect of income derived in the 1992-93 year of income or an earlier year of income - a class A franking debit of the company equal to the adjusted amount in relation to the amount paid or applied, as the case requires;

(d) if the foreign tax credit was allowable in respect of tax paid or payable by the company in respect of income derived in the 1993-94 year of income or the 1994-95 year of income - a class B franking debit of the company equal to the adjusted amount in relation to the amount paid or applied, as the case requires;

(e) if the foreign tax credit was allowable in respect of tax paid or payable by the company in respect of income derived in the 1995-96 year of income or a later year of income - the class C franking debit of the company equal to the adjusted amount in relation to the amount paid or applied, as the case requires.