New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 28   Machinery provisions for simplified imputation system

Income Tax Assessment Act 1997

1   Subsections 202-75(2) and (3)

Repeal the subsections, substitute:

(2) The statement must be given on or before the day on which the *distribution is made, unless the entity is allowed to give the statement at a later time under subsection (3).

(3) If the entity is a *private company for the income year in which the *distribution is made, the statement must be given:

(a) before the end of 4 months after the end of the income year in which the distribution is made; or

(b) before the time determined by the Commissioner under subsection (5);

whichever is later.

(4) However, the entity is not allowed to give the statement at a later time under subsection (3) if the statement indicates that a *franking credit has been allocated to the *distribution and the franking credit would, either alone or when added to other franking credits allocated to other distributions made by the entity during the income year, result in the entity having a liability for *franking deficit tax, or an increased liability for franking deficit tax, at the end of the income year.

Note: The combined effect of subsections (3) and (4) is that a private company can retrospectively frank a distribution, but not so as to create or increase a liability for franking deficit tax.

(5) The Commissioner may determine in writing that a *private company may give the statement before a time specified in the determination.