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 160ATDA   SPECIAL TREATMENT OF SOME FRANKING CREDITS AND DEBITS ARISING BEFORE 1 JULY 2000  

160ATDA(1)   [Adjustments made to franking accounts]  

If:

(a) any of the events specified in the event column of the following table occurred in relation to a company before 1 July 2000; and

(b) the event:

(i) was not a franking credit arising under section 160APL (carry-forward of franking surplus); and

(ii) was not a franking debit arising under section 160APX (under-franking of a dividend), 160AQB (payment of a franked dividend), 160AQCB, 160AQCBA, 160AQCNA or 160AQCNB (dividend streaming or franking credit trading arrangements), 160AQCC (on-market share buy back arrangements) or 160AQCNC (private company distributions treated as dividends);

the adjustments specified in the adjustment column for that item are taken to have been made to the company's franking accounts immediately after the event occurred:

Credits and debits arising before 1 July 2000
Item	Event	Adjustments
1	a class C franking credit of a company arose under this Part and the amount of the credit reflected an applicable general company tax rate of 34%	(a)	a class C franking debit equal to the amount of the class C franking credit; and
		(b)	a class C franking credit equal to the amount worked out using the formula:
			Amount of the class C franking credit	×	34   66	×	64   36
.
2	a class C franking debit of a company arose under this Part and the amount of the debit reflected an applicable general company tax rate of 34%	(a)	a class C franking credit equal to the amount of the class C franking debit; and
		(b)	a class C franking debit equal to the amount worked out using the formula:
			Amount of the class C franking debit	×	34   66	×	64   36
.
3	a venture capital credit of a PDF arose under this Part and the amount of the credit reflected an applicable general company tax rate of 34%	(a)	a venture capital debit of the PDF equal to the amount of the venture capital credit; and
		(b)	a venture capital credit of the PDF equal to the amount worked out using the formula:
			Amount of the venture capital credit	×	34   66	×	64   36
.
4	a venture capital debit of a PDF arose under this Part and the amount of the debit reflected an applicable general company tax rate of 34%	(a)	a venture capital credit of the PDF equal to the amount of the venture capital debit; and
		(b)	a venture capital debit equal to the amount worked out using the formula:
			Amount of the venture capital debit	×	34   66	×	64   36

160ATDA(2)   [Company tax rate of 34%]  

The amount of a credit or debit reflects an applicable general company tax rate of 34% if:

(a) the applicable general company tax rate used to calculate the amount of the credit or debit is 34%; or

(b) (Repealed by No 57 of 2002)

(c) the credit or debit is equal to the amount of an earlier debit or credit and the earlier debit or credit reflected an applicable general company tax rate of 34%.

Note 1:

Paragraph (a) - the applicable general company tax rate will always be involved in the calculation of a credit or debit if an ``adjusted amount'' is used in the calculation.

Note 2:

Paragraph (c) covers provisions such as sections 160APV , 160APVB , 160APVF , 160AQCA , 160AQCCB and 160AQCM .