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

Schedule 5   Franking of dividends by exempting companies and former exempting companies

Income Tax Assessment Act 1936

74   Subsection 221YHZC(1D)

Repeal the subsection, substitute:

(1D) If:

(a) unattributed income is to be paid, in respect of a share investment, as a dividend that has been franked in accordance with section 160AQF or 160AQFA; and

(b) the percentage to which the dividend has been franked in accordance with section 160AQF or 160AQFA is less than 100%;

the amount to be deducted, in accordance with paragraph (1A)(d) of this section, from the unattributed income is the amount (being a multiple of 5 cents) that is, or is nearest to, the amount worked out by using the formula:

[Unattributed income - (Franked amount + Exempted amount)] * Factor

where:

exempted amount means the exempted amount in relation to the dividend.

factor means the factor prescribed for the purposes of subsection (1C).

franked amount means the franked amount (within the meaning of section 160APA) in relation to the dividend.

unattributed income means the amount of unattributed income.