Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 214 - Administering the imputation system  

Subdivision 214-A - Franking returns  

Operative provisions

SECTION 214-45   Effect of a refund on franking returns  

If no franking return is outstanding

214-45(1)    
If:

(a) a *corporate tax entity *receives a refund of income tax or *receives a refund of diverted profits tax; and

(b) the receipt of the refund gives rise to a liability, or an increased liability, to pay *franking deficit tax because of the operation of subsection 205-50(2) or (3); and

(c) when the refund is received, the entity does not have a *franking return that is *outstanding for the income year in which the liability arose;

the entity must give the Commissioner a franking return for the income year within 14 days after the refund is received.

Refund received within 14 days before an outstanding franking return is due

214-45(2)    
If:

(a) an entity *receives a refund of income tax or *receives a refund of diverted profits tax; and

(b) the receipt of the refund gives rise to a liability, or an increased liability, to pay *franking deficit tax because of the operation of subsection 205-50(2) or (3); and

(c) when the refund is received, the entity has a *franking return that is *outstanding for the income year in which the liability arose; and

(d) the entity receives the refund within the period of 14 days ending on the day by which the outstanding return must be given to the Commissioner;

the entity may, instead of accounting for the liability, or increased liability, in the outstanding return, account for it in a further return given to the Commissioner within 14 days after the refund is received.

Meaning of outstanding

214-45(3)    
A *franking return for an income year is outstanding at a particular time if each of the following is true at that time:

(a) the *corporate tax entity has been required to give a *franking return for the income year;

(b) the time within which the franking return must be given has not yet passed;

(c) the franking return has not yet been given.