INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 15 - Transitional provisions for conversion to 30% rate on 1 July 2001  

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

160AUB(1)   [Conversion of class C franking surplus]  

If a company has a class C franking surplus at the start of 1 July 2001:

(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).

160AUB(2)   [Conversion of PDF with a venture capital sub-account surplus]  

If a PDF has a venture capital sub-account surplus at the start of 1 July 2001:

(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).

160AUB(3)   [Conversion of class C franking deficit]  

If a company has a class C franking deficit at the start of 1 July 2001:

(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).

160AUB(4)   [Conversion of PDF with a venture capital sub-account deficit]  

If a PDF has a venture capital sub-account deficit at the start of 1 July 2001:

(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).

160AUB(5)   [Conversion factor]  

The conversion factor is:

34     66

×

70     30