Income Tax Assessment Act 1997
View history note
Hide history noteA *non-share dividend paid by an ADI (an authorised deposit-taking institution) for the purposes of the Banking Act 1959 is unfrankable if:
(a) the ADI is an Australian resident; and
(b) the non-share dividend is paid in respect of a *non-share equity interest that:
(i) by itself; or
forms part of the ADI ' s Tier 1 capital either on a solo or consolidated basis (within the meaning of the *prudential standards); and
(ii) in combination with one or more *schemes that are *related schemes to the scheme under which the interest arises;
(c) the non-share equity interest is issued at or through a *permanent establishment of the ADI in a *listed country; and
(d) the funds from the issue of the non-share equity interest are raised and applied solely for one or more purposes permitted under subsection (2) in relation to the non-share equity interest.
215-10(2)
The permitted purposes in relation to the *non-share equity interest (the relevant interest ) are the following:
(a) the purpose of the business of the ADI carried on at or through the permanent establishment other than the transfer of funds directly or indirectly to:
(i) the Australian head office of the permanent establishment; or
(ii) any *connected entity of the ADI that is an Australian resident; or
(iii) a permanent establishment of the ADI, or of a connected entity of the ADI, located in Australia;
(b) the purpose of redeeming:
(i) a *debt interest; or
that is issued, before the relevant interest is issued, at or through the permanent establishment and is held by a connected entity of the ADI that is an Australian resident;
(ii) a non-share equity interest;
(c) the purpose of returning funds to:
(i) the Australian head office of the permanent establishment; or
if the funds are contributed, before the relevant interest is issued, for use in the business of the ADI carried on at or through the permanent establishment.
(ii) a permanent establishment of the ADI or of a connected entity of the ADI, located in Australia;
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