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

68   Subsection 177EA(16)

Repeal the subsection, substitute:

Meaning of franked distribution

(16) A distribution in respect of an interest in shares is taken to be franked if:

(a) there is a class A flow-on franking amount, a class B flow-on franking amount or a class C flow-on franking amount in relation to the relevant partnership amount or trust amount; or

(b) the distribution is taken by section 160AQZB or 160AQZC to be franked.