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 160ASH CONVERSION OF CLASS B FRANKING ACCOUNT BALANCE TO CLASS C FRANKING ACCOUNT BALANCE

160ASH(1) Conversion of class B franking surplus.

If a company has a class B franking surplus at the class C conversion time then, immediately after that time:

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

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

Amount of class B franking surplus × ³³ / ₆₇ × ⁶⁴ / ₃₆

160ASH(2) Conversion of class B franking deficit.

If a company has a class B franking deficit at the class C conversion time then, immediately after that time:

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

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

Amount of class B franking deficit × ³³ / ₆₇ × ⁶⁴ / ₃₆