Income Tax (Transitional Provisions) Act 1997
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Hide history noteThis section applies to companies whose 2001-02 franking year ends before 30 June 2002 under former Part IIIAA of the Income Tax Assessment Act 1936 (the 1936 Act ).
205-15(2)
If, but for this subsection, the company would have a franking surplus of a particular class under former Part IIIAA of the 1936 Act at the end of 30 June 2002 (an original surplus ):
(a) a franking debit equal to the surplus is taken to arise for the company under former Part IIIAA of the 1936 Act at the end of 30 June 2002; and
(b) a franking credit arises on 1 July 2002 in the franking account established under section 205-10 of the Income Tax Assessment Act 1997 (the 1997 Act ) for the company.
The amount of the franking credit is worked out under subsection (3).
205-15(3)
The franking credit generated under paragraph (2)(b) from an original surplus of a class specified in column 2 of the following table is worked out using the formula in column 3 of the table for that class.
| Conversion of 1936 Act franking surplus into 1997 Act franking credit | ||||
| Item | Original surplus | Franking credit generated under paragraph (2)(b) | ||
| 1 | class A | Amount of the original class A surplus | × |
39
61 |
| . | ||||
| 2 | class B | Amount of the original class B surplus | × |
33
67 |
| . | ||||
| 3 | class C | Amount of the original class C surplus | × |
30
70 |
205-15(4)
If, but for this subsection, the company would have a franking deficit of a particular class under former Part IIIAA of the 1936 Act at the end of 30 June 2002 (an original deficit ):
(a) a franking credit equal to the deficit is taken to arise for the company under former Part IIIAA of the 1936 Act at the end of 30 June 2002; and
(b) a franking debit arises on 1 July 2002 in the franking account established under section 205-10 of the 1997 Act for the company.
The amount of the franking debit is worked out under subsection (5).
205-15(5)
The franking debit generated under paragraph (4)(b) from an original deficit of a class specified in column 2 of the following table is worked out using the formula in column 3 of the table for that class.
| Conversion of 1936 Act franking deficit into 1997 Act franking debit | ||||
| Item | Original deficit | Franking debit generated under paragraph (4)(b) | ||
| 1 | class A | Amount of the original class A deficit | × |
39
61 |
| . | ||||
| 2 | class B | Amount of the original class B deficit | × |
33
67 |
| . | ||||
| 3 | class C | Amount of the original class C deficit | × |
30
70 |
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