INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
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Hide history note(a) the class A required franking amount for a frankable dividend paid by a company on a particular day is not less than 10% of the amount of the dividend; and
(b) that class A required franking amount exceeds the class A franked amount of the dividend;
there arises on that day a class A franking debit of the company equal to the excess referred to in paragraph (b).
(a) the class B required franking amount for a frankable dividend paid by a company on a particular day is not less than 10% of the amount of the dividend; and
(b) that class B required franking amount exceeds the class B franked amount of the dividend;
there arises on that day a class B franking debit of the company equal to the excess referred in to paragraph (b).
(a) the class C required franking amount for a frankable dividend paid by a company on a particular day is not less than 10% of the amount of the dividend; and
(b) that class C required franking amount exceeds the class C franked amount of the dividend;
there arises on that day a class C franking debit of the company equal to the excess referred to in paragraph (b).
If the declaration made in relation to the dividend for the purposes of section 160AQF specifies a percentage for the purposes of subsection 160AQF(1A) , the dividend shall be taken for the purposes of subsection (1) of this section to be a franked dividend to the extent of the percentage so specified.
A taxpayer is not entitled to a rebate of tax under subsection (1) if:
(a) the trust amount was paid:
(i) in respect of an interest in the trust that was acquired, or was acquired for a period that was extended, at or after the commencing time; or
(ii) under a finance arrangement (including an arrangement extending an earlier arrangement) entered into at or after the commencing time; and
(b) the payment may reasonably be regarded as equivalent to the payment of interest on a loan. 160APX(5) [Interpretation]
In subsection (4):
commencing time
means 7.30 pm by legal time in the Australian Capital Territory on 13 May 1997.
paid:
a trust amount is taken to have been paid to a taxpayer if it is included in the taxpayer's assessable income.
In determining whether the payment of the trust amount may reasonably be regarded as equivalent to the payment of interest on a loan, regard is to be had to:
(a) the way in which the amount was calculated; and
(b) the conditions applying to the payment of the amount; and
(c) any other relevant matters.
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