PART III
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LIABILITY TO TAXATION
Division 2
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Income
Subdivision D
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Dividends
SECTION 46F
REBATE NOT ALLOWABLE FOR CERTAIN DIVIDENDS
46F(1)
[Interpretation]
In this section:
exempting entity
has the same meaning as in the
Income Tax Assessment Act 1997
.
group company
has the same meaning as in section
160AFE
of this Act as in force immediately before 1 July 2002.
History
Definition of ``group company'' amended by No 95 of 2004, s 3 and Sch 9 item 1, by inserting ``as in force immediately before 1 July 2002'' after ``this Act'', applicable to dividends paid on or after 1 July 2002.
unfranked part
of a dividend includes a dividend that is unfrankable under the
Income Tax Assessment Act 1997
.
History
Definition of ``unfranked part'' substituted by No 16 of 2003, s 3 and Sch 29 item 7, effective 29 June 2002. The definition formerly read:
unfranked part
of a dividend (including a dividend that is unfrankable under the
Income Tax Assessment Act 1997
), means that part of the dividend that is equal to the amount worked out using the following formula:
where:
corporate tax rate
has the same meaning as in the
Income Tax Assessment Act 1997.
franking credit on the dividend
means the amount of the franking credit on the dividend, worked out under Subdivision
202-D
of the
Income Tax Assessment Act 1997
.
46F(2)
[Entitlement]
Subject to this section, a shareholder is not entitled to, and must not be allowed, a rebate under section
46
or
46A
in respect of:
(a)
if a dividend was paid to the shareholder by a company other than an exempting entity, or by an exempting entity and item 6 or 7 of the table in section
208-130
of the
Income Tax Assessment Act 1997
applied in relation to the dividend:
(i)
the unfranked part of the dividend; or
(ii)
any part of the dividend in respect of which a determination is made under Subdivision
204-D
of the
Income Tax Assessment Act 1997
, or under paragraph
177EA(5)(b)
of this Act; or
(b)
if a dividend was made to the shareholder by an exempting entity and item 6 or 7 of the table in section
208-130
of the
Income Tax Assessment Act 1997
does not apply to the dividend
-
any part of the dividend.
46F(3)
[Application]
Subject to subsection (4), subsection (2) does not apply if:
(a)
the shareholder is a group company in relation to the company paying the dividend in relation to the year of income in which the dividend is paid; or
(b)
were the tests in section
160AFE
for working out relationships between companies to apply to a particular time rather than in relation to a year of income
-
the shareholder would have been a group company in relation to the company paying the dividend at all times during the period of 12 months ending on the day on which the dividend was paid.
46F(4)
[Prescribed dual resident]
Subsection (3) does not affect the application of subsection (2) to the extent that subsection (2) deals with the payment of the unfranked part of a dividend (whether or not under subparagraph (a)(i) of that subsection):
(a)
to a shareholder that is a prescribed dual resident at the time the dividend is paid; or
(b)
by a company that is a prescribed dual resident at the time the dividend is paid.
History
S 46F substituted by No 117 of 2002, s 3 and Sch 15 item 2, applicable to dividends paid after 30 June 2002. S 46F formerly read:
REBATE NOT ALLOWABLE FOR CERTAIN DIVIDENDS
46F(1)
In this section:
exempting company
has the same meaning as in Part IIIAA.
History
Definition of ``exempting company'' inserted by No 93 of 1999.
"group company"
has the same meaning as in section
160AFE
;
"unfranked part"
, in relation to a dividend (including a dividend that is not a frankable dividend within the meaning of section
160APA
), means so much of the dividend as has not been franked in accordance with section
160AQF
or
160AQFA
.
History
Definition of ``unfranked part'' amended by No 93 of 1999.
46F(2)
Subject to this section, a shareholder is not entitled to, and must not be allowed, a rebate under section
46
or
46A
in respect of:
(a)
if a dividend was paid to the shareholder by a company other than an exempting company, or by an exempting company and section
160APPA
applies in relation to the dividend:
(i)
the unfranked part of the dividend; or
(ii)
any part of the dividend in respect of which a determination is made under paragraph
160AQCBA(3)(b)
or
177EA(5)(b)
; or
(b)
if a dividend was paid to the shareholder by an exempting company and section
160APPA
does not apply in relation to the dividend
-
any part of the dividend.
History
S 46F(2) substituted by No 79 of 2000, s 3 and Sch 1 item 1, applicable to dividends paid on or after 1 July 2000. S 46F(2) formerly read:
46F(2)
Subject to this section, a shareholder that is a private company in relation to a year of income and to which a dividend is paid in the year of income is not entitled to, and is not to be allowed, a rebate under section
46
or
46A
in respect of:
(a)
if the dividend was paid by a company other than an exempting company, or the dividend was paid by an exempting company and section
160APPA
applies in relation to the dividend:
(i)
the unfranked part of the dividend; or
(ii)
any part of the dividend in respect of which a determination is made under paragraph
160AQCBA(3)(b)
or
177EA(5)(b)
; or
(b)
if the dividend was paid by an exempting company and section
160APPA
does not apply in relation to the dividend
-
any part of the dividend.
S 46F(2) substituted by No 93 of 1999 and amended by No 47 of 1998.
46F(2A)
(Repealed by No 79 of 2000)
History
S 46F(2A) repealed by No 79 of 2000, s 3 and Sch 1 item 1, applicable to dividends paid on or after 1 July 2000. S 46F(2A) formerly read:
46F(2A)
A shareholder that is a prescribed dual resident is not entitled to, and is not to be allowed, a rebate under section
46
or
46A
in respect of the unfranked part of a dividend paid to the shareholder.
S 46F(2A) inserted by No 95 of 1997.
46F(2B)
(Repealed by No 79 of 2000)
History
S 46F(2B) repealed by No 79 of 2000, s 3 and Sch 1 item 1, applicable to dividends paid on or after 1 July 2000. S 46F(2B) formerly read:
46F(2B)
A shareholder is not entitled to, and is not to be allowed, a rebate under section
46
or
46A
in respect of the unfranked part of a dividend paid by a prescribed dual resident to the shareholder.
S 46F(2B) inserted by No 95 of 1997.
46F(3)
Subject to subsection (3A), subsection (2) does not apply if the shareholder is a group company in relation to the company paying the dividend in relation to the year of income in which the dividend is paid.
History
S 46F(3) amended by No 57 of 2002, s 3 and Sch 3 items 1 and 4, by substituting ``Subject to subsection (3A), subsection (2) does not apply'' for ``Subsection (2) does not apply'', applicable to dividends paid on or after 1 July 2000.
46F(3A)
Subsection (3) does not affect the application of subsection (2) to the extent that subsection (2) deals with the payment of the unfranked part of a dividend (whether or not under subparagraph (a)(i) of that subsection):
(a)
to a shareholder that is a prescribed dual resident at the time the dividend is paid; or
(b)
by a company that is a prescribed dual resident at the time the dividend is paid.
History
S 46F(3A) inserted by No 57 of 2002, s 3 and Sch 3 items 2 and 4, applicable to dividends paid on or after 1 July 2000.
46F(4)
Subsection (2) does not apply to dividends to the extent of the amount of phasing-out dividends included in the distributable income of the shareholder of the year of income concerned for the purposes of Division 7.
S 46F inserted by No 95 of 1988.
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