INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2 - Franking surplus or deficit  

Subdivision C - General provisions on franking debits  

SECTION 160APXA   EXCESSIVE REDUCTION IN SECTION 160APX DEBIT  

160APXA(1)   [Determination by Commissioner of class A franking debit]  

Where:

(a) a class A franking debit of a company that would have arisen under section 160APX has been reduced (including a reduction to nil) under subsection 160APX(2) because the company specified a percentage for the purposes of subsection 160AQF(1A) in relation to a year of income; and

(b) the total amount of the dividends taken into account in determining whether the company has made a sufficient distribution for the purposes of Division 7 of Part III in relation to that year of income exceeds the amount of the dividends required to be paid in order that the company be taken to have made a sufficient distribution;

the Commissioner may determine that a class A franking debit is to arise in relation to the company of such an amount as the Commissioner considers reasonable, not exceeding 120% of the amount of the reduction.

160APXA(2)   [Date debit arises]  

The class A franking debit of the company arises on the day on which the Commissioner serves on the company a notice specifying the amount of the debit.