INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 7B - Tainted share capital accounts  

Subdivision B - Companies other than life assurance companies  

SECTION 160ARDR   ELECTION TO UNTAINT SHARE CAPITAL ACCOUNT  

160ARDR(1)   [Election to untaint account]  

A company with a tainted share capital account may elect in writing to untaint that account. The election can be made at any time but cannot be revoked.

160ARDR(2)   [Specifying amount of franking debit]  

If the company is a company with higher tax shareholders, the election must specify the amount of the franking debit to arise under subsection 160ARDS(2) . The maximum amount that may be specified is the tainting amount less the sum of:

(a) the amount of the class C franking debit (if any) that arose under section 160ARDQ when the share capital account most recently became tainted; and

(b) if the company subsequently transferred one or more further amounts to its share capital account from any of its other accounts - the amounts of any class C franking debits that arose under section 160ARDQ when that further amount or those further amounts were transferred.