Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-6
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THE IMPUTATION SYSTEM
Division 219
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Imputation for life insurance companies
Subdivision 219-B
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Franking accounts of life insurance companies
SECTION 219-30
Franking debits
219-30(1)
The table in section 205-30 (except items 2 and 2A) applies to a *life insurance company in the same way as it applies to any other company.
219-30(2)
The following table sets out when a *franking debit arises under this section in the *franking account of a *life insurance company.
219-30(3)
The proportion is the standard corporate tax rate (within the meaning of Part IVA of the Income Tax Assessment Act 1936 ) divided by 40%.
View history note
Hide history noteThe table in section 205-30 (except items 2 and 2A) applies to a *life insurance company in the same way as it applies to any other company.
219-30(2)
The following table sets out when a *franking debit arises under this section in the *franking account of a *life insurance company.
| Franking debits in the franking account | |||
| Item | If: | A debit of: | Arises: |
| 1 | a *franking credit arises for the company under item 1 of the table in section 219-15 (*payment of a PAYG instalment) | the amount of the franking credit | on the company's *assessment day for the income year mentioned in that item |
| 2 | the company *receives a refund of income tax; and
the company satisfies the *residency requirement for the income year to which the refund relates; and the company was a *franking entity for the whole or part of that income year |
that part of the refund that is attributable to:
(a) the *shareholders ' share of the *income tax liability of the company for that income year; and (b) the period during which the company was a franking entity |
on the day on which the refund is received |
| 3 | the company *receives a *tax offset refund; and
the company does not satisfy the *residency requirement for the income year to which the refund relates; and the company was a *franking entity for the whole or part of that income year; and the company ' s *franking account is in *surplus on the day on which the refund is received |
the lesser of:
(a) that part of the refund that is attributable to: (i) the *shareholders ' share of the *income tax liability of the company for that income year; and (ii) the period during which the company was a franking entity; and (b) the amount of the *franking surplus |
on the day on which the refund is received |
| 4 | the company *receives a refund of diverted profits tax; and
the company satisfies the *residency requirement for the income year to which the refund relates; and the company was a *franking entity for the whole or part of that income year |
that part of the refund that is attributable to:
(a) the *shareholders ' share of the *income tax liability of the company for that income year; and (b) the period during which the company was a franking entity; multiplied by the proportion worked out under subsection (3) |
on the day on which the refund is received |
Note 1:
On the assessment day, a franking debit that arises under item 1 of this table reverses the effect of a franking credit that arose under item 1 of the table in section 219-15 .
Note 2:
Section 219-50 tells you how to work out the part of an amount that is attributable to the shareholders ' share of the income tax liability of the company for the income year.
219-30(3)
The proportion is the standard corporate tax rate (within the meaning of Part IVA of the Income Tax Assessment Act 1936 ) divided by 40%.
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