Income Tax (Transitional Provisions) Act 1997
This section applies to companies whose 2001-02 franking year ends on 30 June 2002 under former Part IIIAA of the Income Tax Assessment Act 1936 (the 1936 Act ).
205-10(2)
If the company has a franking surplus of a particular class under former Part IIIAA of the 1936 Act at the end of 30 June 2002:
(a) no franking credit arises under former section 160APL of that Act because of the surplus; and
(b) a franking credit arises on 1 July 2002 in the franking account established under section 205-10 of the Income Tax Assessment Act 1997 (the 1997 Act ) for the company.
The amount of the franking credit is worked out under subsection (3).
205-10(3)
The franking credit generated under paragraph (2)(b) from a franking surplus of a class specified in column 2 of the following table is worked out using the formula in column 3 of the table for that class.
Conversion of 1936 Act franking surplus into 1997 Act franking credit | ||||
Item | Franking surplus | Franking credit generated under paragraph (2)(b) | ||
1 | class A franking surplus | Amount of the class A franking surplus at
the end of 30 June 2002 under the 1936 Act |
× |
39
61 |
. | ||||
2 | class B franking surplus | Amount of the class B franking surplus at
the end of 30 June 2002 under the 1936 Act |
× |
33
67 |
. | ||||
3 | class C franking surplus | Amount of the class C franking surplus at
the end of 30 June 2002 under the 1936 Act |
× |
30
70 |
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