Taxation Laws Amendment Act (No. 2) 1999 (93 of 1999)

Schedule 4   Franking credits, franking debits and the intercorporate dividend rebate

Income Tax Assessment Act 1936

23   After section 160ARAA

Insert:

160ARAB Adjustment where taxpayer who receives a trust amount or partnership amount is not a qualified person under Division 1A in relation to relevant franked dividend

(1) If:

(a) a trust amount is included in a taxpayer's assessable income of a year of income; and

(b) the taxpayer is not a qualified person in relation to the relevant franked dividend for the purposes of Division 1A; and

(c) no deduction has been allowed, or is allowable, from the taxpayer's assessable income of any year of income under section 160AR in respect of the trust amount;

an amount equal to so much of the class A potential rebate amount, the class B potential rebate amount or the class C potential rebate amount that, if the taxpayer were such a qualified person, would arise in relation to the trust amount as does not exceed the trust amount is allowable as a deduction from the taxpayer's assessable income of the year of income.

(2) If:

(a) a partnership amount is included in, or is allowable as a deduction from, a taxpayer's assessable income of a year of income; and

(b) the taxpayer is not a qualified person in relation to the relevant franked dividend for the purposes of Division 1A; and

(c) no deduction has been allowed, or is allowable, from the taxpayer's assessable income of any year of income under section 160AR in respect of the partnership amount;

the class A potential rebate amount, the class B potential rebate amount or the class C potential rebate amount that, if the taxpayer were such a qualified person, would arise in relation to the partnership amount is allowable as a deduction from the taxpayer's assessable income of the year of income.