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 160ATC   CONVERSION OF BALANCE OF CLASS A FRANKING TO REFLECT THE NEW COMPANY TAX RATE AND TRANSFER TO THE CLASS C FRANKING ACCOUNT  

160ATC(1)   [Franking surplus]  

If a company that is a life assurance company has a class A franking surplus at the start of 1 July 2000:

(a) a class A 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 the class A franking debit multiplied by the conversion factor in subsection (3).

160ATC(2)   [Franking deficit]  

If a company that is a life assurance company has a class A franking deficit at the start of 1 July 2000:

(a) a class A 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 the class A franking credit multiplied by the conversion factor in subsection (3).

160ATC(3)   [Conversion factor]  

The conversion factor is:

39   61

×

66     34