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 160AQCA   TRANSFER OF ASSET TO INSURANCE FUNDS  

160AQCA(1)   [Class A franking debit arises]  

Where:

(a) a class A franking credit of a life assurance company arose under section 160APP or 160APQ at a particular time during a year of income of the company; and

(b) after that time and during the year of income:

(i) if section 160APP applied - the asset of the company from which the dividend referred to in subsection (1) of that section was derived; or

(ii) if section 160APQ applied - the asset of the company to which the trust amount or partnership amount referred to in subsection (1) of that section is attributable;

becomes part of the insurance funds of the company;

there arises, on the day on which the asset becomes part of the insurance funds, a class A franking debit of the company equal to the class A franking credit.

160AQCA(2)   [Class B franking debit arises]  

If:

(a) a class B franking credit of a life assurance company arose under section 160APP or 160APQ at a particular time during a year of income of the company; and

(b) after that time and during the year of income:

(i) if section 160APP applied - the asset of the company from which the dividend referred to in subsection (1A) of that section was derived; or

(ii) if section 160APQ applied - the asset of the company to which the trust amount or partnership amount referred to in subsection (1A) of that section is attributable;

becomes part of the insurance funds of the company;

there arises, on the day on which the asset becomes part of the insurance funds, a class B franking debit of the company equal to the class B franking credit.

160AQCA(3)   [Class C franking credit arises]  

If:

(a) a class C franking credit of a life assurance company arises under section 160APP or 160APQ at a particular time (the crediting time ) during a year of income of the company; and

(b) at any time after the crediting time and during the year of income:

(i) if section 160APP applied - the asset of the company from which the dividend referred to in subsection (1B) of that section was derived; or

(ii) if section 160APQ applied - the asset of the company to which the trust amount or partnership amount referred to in subsection (2) of that section is attributable;

is both part of the insurance funds of the company and not held on behalf of the company's shareholders;

a class C franking debit of the company equal to the class C franking credit arises on the first day on which paragraph (b) applies to the asset.