Taxation Laws Amendment (Company Law Review) Act 1998 (63 of 1998)

Schedule 1   General anti-avoidance rule

Income Tax Assessment Act 1936

2   After section 160AQCNP

Insert:

160AQCNQ Company that is a party to a scheme involving capital benefits

(1) If:

(a) a company is a party to a scheme to which section 45B applies; and

(b) the Commissioner makes a determination under subsection 45C(3) in respect of the whole or a part of a capital benefit provided by the company under the scheme;

a franking debit of the company will arise under section 45C.

(2) The amount of the franking debit is worked out under paragraph 45C(3)(b) and subsection 45C(5).