Taxation Laws Amendment Act (No. 2) 1999 (93 of 1999)

Schedule 5   Franking of dividends by exempting companies and former exempting companies

Income Tax Assessment Act 1936

3   Subsection 46F(2)

Repeal the subsection, substitute:

(2) Subject to this section, a shareholder that is a private company in relation to a year of income and to which a dividend is paid in the year of income is not entitled to, and is not to be allowed, a rebate under section 46 or 46A in respect of:

(a) if the dividend was paid by a company other than an exempting company, or the dividend was paid by an exempting company and section 160APPA applies in relation to the dividend:

(i) the unfranked part of the dividend; or

(ii) any part of the dividend in respect of which a determination is made under paragraph 160AQCBA(3)(b) or 177EA(5)(b); or

(b) if the dividend was paid by an exempting company and section 160APPA does not apply in relation to the dividend - any part of the dividend.