INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS

Division 13 - Transitional provisions arising from the introduction of class C franking credits and class C franking debits

SECTION 160ASG CONVERSION OF CLASS A FRANKING ACCOUNT BALANCE TO CLASS C FRANKING ACCOUNT BALANCE

160ASG(1) Conversion of class A franking surplus.

If, at a company's class C conversion time:

(a) the company is not a life assurance company; and

(b) the company has a class A franking surplus;

then, immediately after the company's class C conversion time:

(c) a class A franking debit of the company arises equal to that class A franking surplus; and

(d) a class C franking credit of the company also arises that is worked out using the formula:

Amount of class A franking surplus × ³⁹ / ₆₁ × ⁶⁴ / ₃₆

160ASG(2) Conversion of class A franking deficit.

If, at a company's class C conversion time:

(a) the company is not a life assurance company; and

(b) the company has a class A franking deficit;

then, immediately after the company's class C conversion time:

(c) a class A franking credit of the company arises equal to that class A franking deficit; and

(d) a class C franking debit of the company also arises that is worked out using the formula:

Amount of class A franking deficit × ³⁹ / ₆₁ × ⁶⁴ / ₃₆