Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 208 - Exempting entities and former exempting entities  

Subdivision 208-H - Tax effect of a distribution franked with an exempting credit  

Operative provisions

SECTION 208-240  

208-240   Distributions to certain individuals  

Division 207 also applies to a *distribution *franked with an exempting credit made by a *former exempting entity as if it were a *franked distribution if:

(a) a *corporate tax entity other than a former exempting entity became an *exempting entity; and

(b) immediately before the entity became an exempting entity all the accountable membership interests and accountable partial interests were beneficially owned (whether directly or indirectly) by individuals who were Australian residents; and

(c) the entity became an exempting entity because some or all of the individuals ceased to be Australian residents; and

(d) the entity becomes a former exempting entity because all of the individuals are or have become Australian residents; and

(e) an amount attributable to a distribution *franked with an exempting credit made by the entity is included in the assessable income of such an individual; and

(f) all the accountable membership interests or accountable partial interests in the entity were, throughout the period beginning when the entity became an exempting entity and ending when the amount was received by the individual mentioned in paragraph (e), beneficially owned (directly or indirectly) by that individual; and

(g) the individual is an eligible continuing substantial member in relation to the distribution.