INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2 - Franking surplus or deficit  

Subdivision CA - Franking debits of life assurance companies where relevant year of income is no later than 1999-2000  

SECTION 160AQCN   LIFE ASSURANCE COMPANIES - STATUTORY FUND COMPONENT  

160AQCN(1)   [Class A franking debit arises]  

If, on a particular day, a class B franking credit of a company arises under any of the following provisions:

(aa) subsection 160APVA(1) ;

(ab) subsection 160APVA(3) ;

(a) section 160APVBA ;

(b) section 160APVBB ;

(c) subsection 160APVC(1) ;

(d) subsection 160APVC(3) ;

(e) subsection 160APVD(2) ;

there arises on that day a class A franking debit of the company equal to the amount that would have been the amount of that class B franking credit if the assumptions set out in subsection (2) were made.

160AQCN(2)   [Assumptions relating to class B franking credit]  

The assumptions are as follows:

(a) the assumption that the class B franking credit had been calculated using a statutory factor of 0.2 instead of 1.0;

(b) the assumption that the class B franking credit had been calculated by reference to the special life company tax rate for the year of tax concerned instead of by reference to the general company tax rate for the year of tax concerned;

(c) the assumption that the reference to standard component in the provision concerned were a reference to general fund component.

160AQCN(2AA)   Life assurance companies - statutory fund component.  

If, on a particular day, a class C franking credit of a company arises under any of the following provisions:

(a) subsection 160APVA(1A) ;

(b) subsection 160APVA(3A) ;

(c) section 160APVBA ;

(d) section 160APVBB ;

(e) subsection 160APVD(3) ;

there arises on that day a class A franking debit of the company equal to the amount that would have been the amount of that class C franking credit if the assumptions set out in subsection (2AB) were made.

160AQCN(2AAA)   [When sec 160AQCNCH applies]  

Paragraphs (2AA)(b), (c) and (e) do not apply to a franking credit if section 160AQCNCH (transitional provision for late balancing life assurance company for 1999-2000 year of income) applies to the franking credit.

160AQCN(2AB)   [Assumptions relating to class C franking credit]  

The assumptions are as follows:

(a) the assumption that the class C franking credit had been calculated using a statutory factor of 0.2 instead of 1.0;

(b) the assumption that the class C franking credit had been calculated by reference to the special life company tax rate for the year of tax concerned instead of by reference to the general company tax rate for the year of tax concerned;

(c) the assumption that the reference to standard component in the provision concerned were a reference to general fund component.

160AQCN(2A)   [Notice of assessment served on company]  

If:

(a) on a particular day, a class A franking credit of a company arises under subsection 160APVH(1) because of paragraph (aa) of that subsection, or under subsection 160APVH(4) because of paragraph (a) of that subsection, in relation to a company tax instalment in respect of a year of income; and

(b) on or after that day, a notice of an original company tax assessment for the year of income is served, or taken to be served, on the company;

then a class A franking debit of the company equal to the amount of the class A franking credit arises on the day on which the notice is served or taken to be served.

160AQCN(3)   [Franking credit in relation to initial payment of tax]  

If:

(a) on a particular day, a class A franking credit of a company arises under subsection 160APVH(1) because of paragraph (a) of that subsection in relation to an initial payment of tax in respect of a year of income; and

(b) on or after that day, a notice of an original company tax assessment for the year of income is served, or deemed to be served, on the company;

there arises, on the day on which the notice is served or deemed to be served, a class A franking debit of the company equal to the amount of the class A franking credit.

160AQCN(4)   [Franking credit in relation to further payment of tax]  

If:

(a) on a particular day, a class A franking credit of a company arises under subsection 160APVH(1) because of paragraph (c) of that subsection in relation to a further payment on account of tax in respect of a year of income; and

(b) on or after that day, a notice of an original company tax assessment for the year of income is served, or deemed to be served, on the company;

there arises, on the day on which the notice is served or deemed to be served, a class A franking debit of the company equal to the amount of the class A franking credit.