Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 214 - Administering the imputation system  

SECTION 214-15   Effect of a refund on franking returns  

If no franking return is outstanding

214-15(1)    
If:

(a) the entity receives a refund of income 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 205-30(2) or (3) of this Act; and

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

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

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

214-15(2)    
If:

(a) the entity receives a refund of income 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 205-30(2) or (3) of this Act; and

(c) when the refund is received, the entity does not have a franking return that is outstanding for the balancing period 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

214-15(3)    
A franking return for a balancing period is outstanding at a particular time if each of the following is true at that time:

(a) the entity has been required to give a franking return for the period;

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

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