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 160AUD   SPECIAL TREATMENT OF SOME FRANKING CREDITS AND DEBITS ARISING BEFORE 1 JULY 2001  

160AUD(1)   [Adjustments to company's 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 2001; and

(b) the event:

(i) was not a franking credit arising under section 160APL (carry forward of surplus from previous franking year) or 160ASEE (carry forward of venture capital sub-account surplus from previous franking year); 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 2001
Item	Event	Adjustments
1	a class C franking credit of a company arose under this Part and the amount of the credit reflectd an applicable general company tax rate of 30%	(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	×	30 70	×	66 34
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 30%	(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	×	30 70	×	66 34
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 30%	(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	×	30 70	×	66 34
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 30%	(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	×	30 70	×	66 34

160AUD(2)   [When amount of credit or debit reflects company tax rate of 30%]  

The amount of a credit or debit reflects an applicable general company tax rate of 30% if:

(a) the applicable general company tax rate used to calculate the amount of the credit or debit is 30%; or

(b) the debit arises under subsection 160AQC(3) or section 160ASEI and the amount of the estimated debit concerned is based on a 30% general company tax rate; or

(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 30%.

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 , 160AQCA and 160AQCCB .