Tax Laws Amendment (2006 Measures No. 2) Act 2006 (58 of 2006)

Schedule 5   Franking deficit tax

Income Tax Assessment Act 1997

2   At the end of section 205-70

Add:

Commissioner's discretion

(6) The 30% reductions in steps 1 and 2 of the method statement in subsection (2) do not apply in working out the amount of the *tax offset to which the entity is entitled for the relevant year if the Commissioner determines in writing, on application by the entity in the *approved form, that the excess referred to in those steps was due to events outside the control of the entity.

(7) A determination under subsection (6) is not a legislative instrument.

Applicable franking debits

(8) This subsection applies to *franking debits in the *franking account of an entity:

(a) that arise under table item 1, 3, 5 or 6 in section 205-30 for an income year; and

(b) if the entity has franking debits covered by paragraph (a) for that income year - that arise under table item 2 in that section for that income year.