Taxation Laws Amendment Act (No. 3) 1998 (47 of 1998)

Schedule 7   Franking of dividends and other distributions

Part 2   Income Tax Assessment Act 1936 (schemes to provide franking credit benefits)

14   At the end of section 160APQ

Add:

(4) If a determination is made under paragraph 177EA(5)(b) in respect of the whole of a dividend or distribution represented by the trust amount or partnership amount, no franking credit arises under subsection (1), (1A) or (2) in respect of the dividend or distribution.

(5) If a determination is made under paragraph 177EA(5)(b) in respect of a part of a dividend or distribution represented by the trust amount or partnership amount, the franking credit that would otherwise arise under subsection (1), (1A) or (2) in respect of the dividend or distribution is reduced by the same proportion as that part of the dividend or distribution bears to the whole of the dividend or distribution.