INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2 - Franking surplus or deficit  

Subdivision CA - Franking debits of life assurance companies where relevant year of income is no later than 1999-2000  

SECTION 160AQCCA   LIFE ASSURANCE COMPANIES - DEBIT REDUCING SECTION 160APM OR 160APMAA CREDIT  

160AQCCA(1)   [Class B franking debit arises]  

If:

(a) on a particular day, a class B franking credit of a life assurance company arises:

(i) under section 160APM in relation to an instalment that the company is required to pay under section 221AZK in respect of a year of income (also the ``current year of income'' ); or

(ii) under section 160APMAA in relation to an amount that the company is required to pay under subsection 221AZR(1) in respect of a year of income (also the ``current year of income'' ); and

(b) a notice of an original company tax assessment for the current year of income has not been served, or been taken to have been served, on the company on or before that day;

then a class B franking debit of the company worked out under subsection (2) of this section arises on that day.

160AQCCA(1A)   [Class C franking debit arises]  

If:

(a) on a particular day, a class C franking credit of a life assurance company arises:

(i) under section 160APM in relation to an instalment that the company is required to pay under section 221AZK in respect of a year of income (the current year of income ); or

(ii) under section 160APMAA in relation to an amount that the company is required to pay under subsection 221AZR(1) in respect of a year of income (also the current year of income ); and

(b) a notice of an original company tax assessment for the current year of income has not been served, or been taken to have been served, on the company on or before that day;

then a class C franking debit of the company worked out under subsection (2) of this section arises on that day.

160AQCCA(2)   [Amount of franking debit]  

The amount of the franking debit is equal to the adjusted amount in relation to the amount calculated for the current year of income using the formula:

where:

`` Statutory factor '' means 1.0;

Note:

Statutory factor is used and modified in section 160APVH .

`` Preceding year's company tax '' means the company tax assessed to the company for the year of income (the ``preceding year of income'' ) that immediately preceded the current year of income;

`` Standard component of preceding year's company tax' ' means so much of the company tax assessed to the company for the preceding year of income as is attributable to the standard component.

160AQCCA(3)   [Further class B franking debit]  

If:

(a) on a particular day, a class B franking credit of a life assurance company arises under:

(i) section 160APM in relation to an instalment that the company is required to pay under section 221AZK in respect of a year of income (the ``current year of income'' ); or

(ii) under section 160APMAA in relation to an amount that the company is required to pay under subsection 221AZR(1) in respect of a year of income (also the ``current year of income'' ); and

(b) either:

(i) before that day, a notice of an original company tax assessment for the current year of income has been served, or is taken to have been served, on the company; or

(ii) on or after that day, a notice of an original company tax assessment for the current year of income is served, or taken to be served, on the company;

then a class B franking debit of the company worked out under subsection (4) of this section arises on the later of the particular day and the day on which the notice is served or taken to be served.

160AQCCA(3A)   [Further class C franking debit]  

If:

(a) on a particular day, a class C franking credit of a life assurance company arises under:

(i) section 160APM in relation to an instalment that the company is required to pay under section 221AZK in respect of a year of income (the current year of income ); or

(ii) under section 160APMAA in relation to an amount that the company is required to pay under subsection 221AZR(1) in respect of a year of income (also the current year of income ); and

(b) either:

(i) before that day, a notice of an original company tax assessment for the current year of income has been served, or is taken to have been served, on the company; or

(ii) on or after that day, a notice of an original company tax assessment for the current year of income is served, or taken to be served, on the company; and

(c) section 160AQCNCF (transitional provision for late balancing life assurance company for 1999-2000 year of income) does not apply to the class C franking credit;

then a class C franking debit of the company worked out under subsection (4) of this section arises on the later of the particular day and the day on which the notice is served or taken to be served.

160AQCCA(4)   [Amount of further franking debit]  

The amount of the franking debit is equal to the adjusted amount in relation to the amount calculated using the formula:

where:

`` Statutory factor '' means 1.0;

Note:

Statutory factor is used and modified in section 160APVH .

`` Current year's company tax '' means the company tax assessed to the company for the current year of income;

`` Standard component of current year's company tax '' means so much of the company tax assessed to the company for the current year of income as is attributable to the standard component.