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 160ATH   MODIFYING THE OPERATION OF SUBSECTION 160AQE(3)  

160ATH(1)   When this section applies.  

This section deals with the situation in which:

(a) subsection 160AQE(3) is applied to work out the provisional required franking amount for a dividend (the current dividend ) paid on or after 1 July 2000; and

(b) the earlier franked dividend referred to in that subsection was paid before 1 July 2000.

160ATH(2)   Effect on required franking amount - companies other than life assurance companies.  

If the company is not a life assurance company at the beginning of the reckoning day for the current dividend, the component EFA in the formula in subsection 160AQE(3) is worked out using the following formula:

Class C franked amount   ×

36     64

×

66     34

where:

class C franked amount
is the amount that is the class C franked amount of the earlier dividend.

160ATH(3)   [Life assurance companies]  

If the company is a life assurance company at the beginning of the reckoning day for the current dividend, the component EFA in the formula in subsection 160AQE(3) is worked out using the following formula:

where:

class A franked amount
is the amount (if any) that is the class A franked amount of the earlier dividend.

class C franked amount
is the amount (if any) that is the class C franked amount of the earlier dividend.