Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 220 - Imputation for NZ resident companies and related companies  

Subdivision 220-C - Modifications of other Divisions of this Part  

Effects of supplementary dividend from NZ franking company

SECTION 220-410   Franking credit reduced if tax offset reduced  

220-410(1)    
If, under section 220-400 or 220-405 , a *corporate tax entity's *tax offset (the reduced tax offset ) for the *franked distribution described in that section is less than it would be apart from that section, the *franking credit arising in that entity's *franking account because of the *distribution is equal to the reduced tax offset.

220-410(2)    

The following provisions have effect subject to this section:

(a) items 3 and 4 of the table in section 205-15 ;

(b) items 5 and 6 of the table in section 219-15 .

Note:

Each of those items gives rise to a franking credit for a franked distribution if the recipient is entitled under Division 207 to a tax offset for the distribution. Those items provide that the amount of the credit equals the amount of that offset.