Income Tax Assessment Act 1997
View history note
Hide history noteIf:
(a) a *corporate tax entity pays a *non-share dividend; and
(b) immediately before the payment, the amount of the *available frankable profits of the entity is nil, or less than nil;
the non-share dividend is unfrankable .
215-15(2)
If:
(a) a *corporate tax entity pays a *non-share dividend that is not one of a number of non-share dividends paid at the same time; and
(b) immediately before the payment, the amount of the *available frankable profits of the entity, although greater than nil, are less than the amount of the non-share dividend;
the entity is taken to have made a frankable distribution equal to the amount of the available frankable profits. The remainder of the dividend is taken to be an unfrankable distribution.
215-15(3)
If:
(a) a *corporate tax entity pays a *non-share dividend that is one of a number paid at the same time; and
(b) immediately before the payment, the amount of the *available frankable profits of the entity, although greater than nil are less than the sum of the amounts of the non-share dividends;
the entity is taken to have made a frankable distribution equal to the amount worked out using the formula:
|
Amount of the *non-share dividend
Sum of the amounts of all the non-share dividends |
× | *Available frankable profits |
The remainder of the dividend is taken to be an unfrankable distribution.
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