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)

24   After section 160AR

Insert:

160ARAA Adjustment where franking rebate arises

(1) If:

(a) a trust amount is included in a taxpayer's assessable income of a year of income; and

(b) a determination under paragraph 177EA(5)(b) is made in respect of a distribution represented by the trust amount; and

(c) except for the determination the taxpayer would be entitled to a franking rebate under section 160AQX, 160AQY, 160AQYA, 160AQZ or 160AQZA; and

(d) no deduction has been allowed, or is allowable, from the taxpayer's assessable income of any year of income under section 160AR in respect of the trust amount;

an amount equal to so much of the class A potential rebate amount, the class B potential rebate amount or the class C potential rebate amount that, except for the determination, would arise in relation to the trust amount as does not exceed the trust amount is allowable as a deduction from the taxpayer's assessable income of the year of income.

(2) If:

(a) a partnership amount is included in, or is allowable as a deduction from, a taxpayer's assessable income of a year of income; and

(b) a determination under paragraph 177EA(5)(b) is made in respect of a distribution represented by the partnership amount; and

(c) except for the determination, the taxpayer would be entitled to a franking rebate under section 160AQX, 160AQY, 160AQYA, 160AQZ or 160AQZA; and

(d) no deduction has been allowed, or is allowable, from the taxpayer's assessable income of any year of income under section 160AR in respect of the partnership amount;

the class A potential rebate amount, the class B potential rebate amount or the class C potential rebate amount that, except for the determination, would arise in relation to the partnership amount is allowable as a deduction from the taxpayer's assessable income of the year of income.