INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 5 - Franking of dividends  

Subdivision C - Franking deficit tax and deficit deferral tax to offset company tax  

SECTION 160AQKAB   AMOUNT OF A LIFE ASSURANCE COMPANY'S LIABILITY TO PAY COMPANY TAX THAT WOULD NORMALLY GIVE RISE TO FRANKING CREDITS  

160AQKAB(1)   Years of income ending before 1 July 2000.  

If an eligible year of income of a life assurance company ends before 1 July 2000, the amount of the company's liability to pay company tax for that year that would normally give rise to franking credits is the amount of the company's liability to pay company tax for that year, reduced by the sum of the following:

(a) the amount of the company tax that is attributable to the RSA component of the taxable income of the company for the year of income;

(b) 80% of the amount of the company tax that is not attributable to the general fund component of the taxable income of the company for the year of income.

160AQKAB(2)   1999-2000 year of income ending on or after 1 July 2000.  

If the 1999-2000 year of income of a life assurance company ends on or after 1 July 2000, the amount of the company's liability to pay company tax for that year that would normally give rise to franking credits is the amount of the company's liability to pay company tax for that year, reduced by the sum of the following:

(a) the amount of the company tax that is attributable to income earned before 1 July 2000 and also attributable to the RSA component of the taxable income of the company for the year of income;

(b) 80% of the amount of the company tax that is attributable to income earned before 1 July 2000 and is not attributable to the general fund component of the taxable income of the company for the year of income;

(c) the amount of the company tax that is attributable to income earned on or after 1 July 2000 and is not attributable to shareholders' funds income.

160AQKAB(3)   2000-01 year of income begins before 1 July 2000.  

If the 2000-01 year of income of a life assurance company begins before 1 July 2000, the amount of the company's liability to pay company tax for that year that would normally give rise to franking credits is the amount of the company's liability to pay company tax for that year, reduced by the sum of the following:

(a) the amount of the company tax that is attributable to income earned before 1 July 2000 and also attributable to the RSA component of the taxable income of the company for the year of income;

(b) 80% of the amount of the company tax that is attributable to income earned before 1 July 2000 and is not attributable to the general fund component of the taxable income of the company for the year of income;

(c) the amount of the company tax that is attributable to income earned on or after 1 July 2000 and is not attributable to shareholders' funds income.

160AQKAB(4)   Other years of income.  

If an eligible year of income of a life assurance company ends on or after 1 July 2000 and is not dealt with in subsection (2) or (3), the amount of the company's liability to pay company tax for that year that would normally give rise to franking credits is the amount of the company's liability to pay company tax for that year that is attributable to shareholders' funds income.

160AQKAB(5)   Working out the company tax for the year.  

For the purposes of this section, the amount of the company's liability to pay company tax for a year of income is:

(a) if an original company tax assessment for the year of income has been served on the company and has not (or not yet) been amended - the amount of the company's liability to pay company tax for that year under that assessment; and

(b) if an amended company tax assessment for the year of income is served on the company - the amount of the company's liability to pay company tax for that year under that assessment.

160AQKAB(6)   Definition.  

For the purposes of this section:

RSA component
has the same meaning as in Division 8 of Part III (as in force immediately before 1 July 2000).