INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 4 - Required franking amount  

SECTION 160AQDB   HOW TO WORK OUT THE CLASS A REQUIRED FRANKING AMOUNT AND THE CLASS B REQUIRED FRANKING AMOUNT  

160AQDB(1)   [Class A required franking amount]  

For the purposes of this Part, the class A required franking amount for a dividend paid to a shareholder in a company is the amount that would be the required franking amount for the dividend if:

(a) the reference in section 160AQE to the franking surplus of the company at the beginning of the reckoning day for the dividend were, by express provision, confined to the class A franking surplus of the company at the beginning of that day; and

(b) each reference in section 160AQE to a franked amount were, by express provision, confined to a class A franked amount; and

(c) each reference in section 160AQE to a required franking amount were, by express provision, confined to a class A required franking amount; and

(d) each reference in section 160AQE to a franking debit were, by express provision, confined to a class A franking debit.

160AQDB(2)   [Class B required franking amount]  

For the purposes of this Part, if the beginning of the reckoning day is before the company's class C conversion time, the class B required franking amount for a dividend paid to a shareholder in the company is worked out using the formula:

Gross required   franking amount

−

Class A required franking         amount

where:

`` Gross required franking amount '' means the required franking amount for the dividend;

`` Class A required franking amount '' means the class A required franking amount for the dividend.

160AQDB(3)   [Nil class B required franking amount]  

For the purposes of this Part, if the beginning of the reckoning day is after the company's class C conversion time, the class B required franking amount for a dividend paid to a shareholder in the company is nil.

160AQDB(4)   [Class C required franking amount]  

For the purposes of this Part, if the beginning of the reckoning day is after the company's class C conversion time, the class C required franking amount for a dividend paid to a shareholder in the company is worked out using the formula:

Gross required   franking amount

−

Class A required franking         amount

where:

Gross required franking amount means the required franking amount for the dividend.

Class A required franking amount means the class A required franking amount for the dividend.

160AQDB(5)   [Nil class C required franking amount]  

For the purposes of this Part, if the beginning of the reckoning day is before the company's class C conversion time, the class C required franking amount for a dividend paid to a shareholder in the company is nil.