INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 5 - Franking of dividends  

Subdivision A - Franking  

SECTION 160AQG   COMBINED CLASS OF DIVIDENDS TO BE EQUALLY FRANKED  

160AQG(1)   [Dividends constituting combined class]  

The dividends paid during a franking year to shareholders in a company that satisfy the following conditions shall be taken to constitute a combined class of dividends:

(a) the dividends are paid in respect of shares of the same class (in this subsection called the ``applicable class'' );

(b) each of the dividends is paid under a resolution, but not all the dividends are paid under the same resolution;

(c) for each resolution to which paragraph (b) applies, the dividends to which the resolution relates are to be paid on only some of the shares of the applicable class.

160AQG(2)   [Resolution under which dividends paid]  

Dividends that constitute a combined class of dividends shall be taken for the purposes of section 160AQF or 160AQFA to have been paid under the resolution under which the first of those dividends was paid and not under any other resolution.

160AQG(3)   [Franking debit re dividend]  

This section does not apply in relation to a dividend paid by a company if the payment of the dividend gives rise to a franking debit of the company under section 160AQCB .

Note:

Because of subsection 46M(3) and paragraph 46M(4)(a) , this section does not apply to dividends that are taken by that subsection or paragraph not to be frankable dividends.

160AQG(4)   [Franking year includes 1 July 2000]  

If a company has a franking year that includes, but does not start on, 1 July 2000, subsections (1) to (3) apply to the company as if the following periods were separate franking years:

(a) the period starting at the start of the company's franking year and ending on 30 June 2000;

(b) the period starting on 1 July 2000 and ending at the end of the franking year.

160AQG(5)   [Franking year includes 1 July 2001]  

If a company has a franking year that includes, but does not start on, 1 July 2001, subsections (1) to (3) apply to the company as if the following periods were separate franking years:

(a) the period starting at the start of the company's franking year and ending on 30 June 2001;

(b) the period starting on 1 July 2001 and ending at the end of the franking year.