Income Tax Assessment Act 1997

Pt 3-6 inserted by No 48 of 2002.

Div 207 inserted by No 48 of 2002.

Subdiv 207-D substituted by No 83 of 2004, s 3 and Sch 10 item 8, applicable to events that occur on or after 1 July 2002, subject to the rules on the application of Part 3-6 of the Income Tax Assessment Act 1997 set out in the Income Tax (Transitional Provisions) Act 1997 . Subdiv 207-D formerly read:

Subdivision 207-D - Adjustments where the ultimate recipient of a distribution is not a resident

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Subdiv 207-D inserted by No 48 of 2002.

What this Subdivision is about  
207-80
Adjustments are made where a franked distribution flows indirectly to a non-resident to ensure that the recipient is not taxed inappropriately.

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S 207-80 inserted by No 48 of 2002.

Adjustments where an entity to which a distribution flows indirectly is a non-resident  
207-85(1)
Where a franked distribution flows indirectly to an entity who is not a resident, an amount of the distribution, worked out by applying the franking percentage for the distribution to the amount of the distribution that flows indirectly to the entity, is not included in the assessable income of the entity because of section 128D of the Income Tax Assessment Act 1936 .

207-85(2)
However, unless an adjustment were made, that entity's share of the franking credit on the distribution would be assessed.

207-85(3)
Adjustments are therefore made under this Subdivision to ensure that this does not occur.

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S 207-85 inserted by No 48 of 2002.

Adjustment for non-resident beneficiaries  
207-90
Where:

(a) a *franked distribution *flows indirectly to an individual or a *corporate tax entity as beneficiary of a trust; and

(b) the distribution does not flow indirectly to the entity as trustee of a trust; and

(c) a share of the *net income of the trust is included in the assessable income of the entity, for the income year in which the distribution is made, under section 97, 98A or 100 of the Income Tax Assessment Act 1936 ; and

(d) but for section 128D of that Act, that share would include income to which section 128B of that Act would apply but for paragraph 128B(3)(ga);

a deduction is allowed from the assessable income of the entity for that income year of an amount worked out under Subdivision 207-J .

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S 207-90 inserted by No 48 of 2002.

Adjustment where trustee assessed for non-resident beneficiary  
207-95
Where:

(a) a *franked distribution *flows indirectly to the trustee of a trust; and

(b) the trustee is liable to be assessed on a share of the *net income of the trust, for the income year in which the distribution is made, under section 98 of the Income Tax Assessment Act 1936 ; and

(c) but for section 128D of that Act, that share would include income to which section 128B of that Act would apply but for paragraph 128B(3)(ga);

the share of the net income of the trust on which the trustee is liable to be assessed is reduced by an amount worked out under Subdivision 207-J .

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S 207-95 inserted by No 48 of 2002.

Adjustment for non-resident partners  
207-100
Where:

(a) a *franked distribution *flows indirectly to an individual or *corporate tax entity as partner in a *partnership; and

(b) the distribution does not flow indirectly to that entity as trustee of a trust; and

(c) either:

(i) a share of the *net income of the partnership is included in the entity's assessable income, for the income year in which the distribution is made, under subsection 92(1) of the Income Tax Assessment Act 1936 ; or

(ii) a share of the *partnership loss of the partnership is allowable as a deduction to the entity, for the income year in which the distribution is made, under subsection 92(2) of that Act; and

(d) but for section 128D of that Act, that share would include income to which section 128B of that Act would apply but for paragraph 128B(3)(ga);

a deduction is allowed from the assessable income of the entity for that income year of the amount worked out under Subdivision 207-J .

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History

S 207-100 inserted by No 48 of 2002.

S 207-90(1) amended by No 83 of 2004.

S 207-90(2) amended by No 83 of 2004, s 3 and Sch 10 item 26, by substituting " *non-assessable non-exempt income " for " an amount that is neither assessable income nor exempt income " in para (c), applicable to assessments for the 2003-04 income year and later income years.

S 207-90 inserted by No 83 of 2004, s 3 and Sch 10 item 8, applicable to events that occur on or after 1 July 2002, subject to the rules on the application of Part 3-6 of the Income Tax Assessment Act 1997 set out in the Income Tax (Transitional Provisions) Act 1997 . For former wording of s 207-90 see note under Subdiv 207-D heading.