INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 14 - Transitional provisions for conversion to 34% rate on 1 July 2000  

SECTION 160ATB   CONVERSION OF BALANCE OF CLASS C FRANKING ACCOUNT TO REFLECT THE NEW COMPANY TAX RATE  

160ATB(1)   [Company with class C surplus]  

If a company has a class C franking surplus at the start of 1 July 2000:

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

(b) a class C franking credit of the company arises equal to the amount of that debit multiplied by the conversion factor in subsection (5).

160ATB(2)   [PDFs - venture capital surplus]  

If a PDF has a venture capital sub-account surplus at the start of 1 July 2000:

(a) a venture capital debit of the PDF arises equal to that surplus; and

(b) a venture capital credit of the PDF arises equal to the amount of that debit multiplied by the conversion factor in subsection (5).

160ATB(3)   [Company with class C deficit]  

If a company has a class C franking deficit at the start of 1 July 2000:

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

(b) a class C franking debit of the company arises equal to the amount of that credit multiplied by the conversion factor in subsection (5).

160ATB(4)   [PSF with venture capital deficit]  

If a PDF has a venture capital sub-account deficit at the start of 1 July 2000:

(a) a venture capital credit of the PDF arises equal to that deficit; and

(b) a venture capital debit of the PDF arises equal to the amount of that credit multiplied by the conversion factor in subsection (5).

160ATB(5)   [Conversion factor]  

The conversion factor is:

36   64

×

66     34