Income Tax Assessment Act 1997
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Hide history noteSECTION 220-605 Effect on exempting account if NZ franking choice ceases to be in force 220-605(1)
This section has effect if:
(a) a company has made an *NZ franking choice; and
(b) the choice is revoked or cancelled at a time (the end time ); and
(c) immediately before the end time:
(i) the company is a foreign resident; and
(ii) the company is a *former exempting entity.
Exempting debit if exempting surplus just before end time
220-605(2)
An *exempting debit arises in the company ' s *exempting account at the end time if the account was in *surplus immediately before that time. The amount of the debit equals the *exempting surplus.
If exempting deficit just before end time
220-605(3)
If the company ' s *exempting account was in *deficit immediately before the end time:
(a) a *franking debit equal to that deficit arises in the company ' s *franking account immediately before the end time; and
(b) an *exempting credit equal to that deficit arises in the company ' s exempting account at the end time.
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