Income Tax Assessment Act 1997
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Hide history noteSECTION 220-205 Franking credit for payment of NZ franking company's withholding tax liability 220-205(1)
A *franking credit arises in the *franking account of a company on the day a payment is made of *withholding tax that the company is liable under section 128B of the Income Tax Assessment Act 1936 to pay, if:
(a) because of section 220-25 , the company satisfies the *residency requirement for the income year in which it *derived the income on which it was liable to pay the withholding tax; and
(b) the company is a *franking entity for the whole or part of that income year.
The amount of the credit equals the amount of the payment.
220-205(2)
For the purposes of determining whether the company satisfies the *residency requirement for the income year described in paragraph (1)(a), section 205-25 has effect as if the derivation of the income described in that paragraph were an event specified in a relevant table for the purposes of that section.
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