New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (90 of 2002)

Schedule 13   Exempting entities and former exempting entities

Income Tax Assessment Act 1997

8   After section 204-40

Insert:

204-41 Amount of the exempting debit

The amount of the*exempting debit arising because of a determination by the Commissioner under paragraph 204-30(3)(b) must not exceed:

(a) if the specified*distribution has been*franked with an exempting credit - the difference between the amount of the*exempting credit on the distribution and an amount worked out by multiplying the amount of the distribution by the highest*exempting percentage at which a distribution to a favoured member is franked; or

(b) if the specified distribution, although*frankable, has not been franked with an exempting credit - an amount worked out by multiplying the amount of the distribution by the highest exempting percentage at which a distribution to a favoured member is franked; or

(c) if the specified distribution is*unfrankable - an amount worked out by multiplying the amount of the distribution by the highest exempting percentage at which a distribution to a favoured member is franked; or

(d) if the specified benefit is the issue of bonus shares from a share premium account - an amount worked out by multiplying the amount debited to the share premium account in respect of the bonus shares by the highest exempting percentage at which a distribution to a favoured member is franked; or

(e) if some other benefit is specified - an amount worked out by multiplying the value of the benefit by the highest exempting percentage at which a distribution to a favoured member is franked.