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 160ASK   PROVISIONS RELATING TO COMPANIES WITH CLASS A OR CLASS B REQUIRED FRANKING AMOUNTS  

160ASK(1)   Class A required franking amounts.  

If:

(a) a company, other than a life assurance company, pays a dividend at a particular time after the class C conversion time of the company; and

(b) the beginning of the reckoning day for the dividend is before the class C conversion time for the company; and

(c) a class A franking debit arises from the payment of the dividend;

then, at that time:

(d) a class A franking credit arises equal to the amount of the class A franking debit; and

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

Amount of class A franking debit   ×

39     61

×

66     34

160ASK(2)   Class B required franking amounts.  

If:

(a) a company pays a dividend at a particular time after the class C conversion time of the company; and

(b) the beginning of the reckoning day for the dividend is before the class C conversion time for the company; and

(c) a class B franking debit arises from the payment of the dividend;

then, at that time:

(d) a class B franking credit arises equal to the amount of the class B franking debit; and

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

Amount of class B franking debit   ×

33   67

×

66     34