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 160AQCD   LIFE ASSURANCE COMPANIES - DEBIT REDUCING SECTION 160APMA CREDIT  

160AQCD(1)   [When franking debit arises]  

Where, on a particular day, a franking credit of a life assurance company arises under section 160APMA in relation to an initial payment of tax that the company is required to make under section 221AP in respect of a year of income (in subsection (2) of this section called the ``current year of income'' ) there arises on that day whichever of the following is applicable:

(a) if the year of income is the 1992-93 year of income or an earlier year of income - a class A franking debit of the company worked out under subsection (2) of this section;

(b) if the year of income is the 1993-94 year of income or a later year of income - a class B franking debit of the company worked out under subsection (2) of this section.

160AQCD(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:

(a) in the case of a class A franking debit - 0.8; or

(b) in the case of a class B franking debit - 1.0;

`` Initial payment '' means the initial payment of tax;

`` Preceding year's company tax '' means the company tax assessed to the company for the year of income (in this subsection called 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.

160AQCD(3)   [Further franking debit]  

If:

(a) on a particular day, a franking credit of a life assurance company arises under section 160APMA in relation to an initial payment of tax that the company is required to make under section 221AP in respect of a year of income; and

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

there arises, on the day on which the notice is served or deemed to be served, whichever of the following is applicable:

(c) if the year of income is the 1992-93 year of income or an earlier year of income - a class A franking debit of the company worked out under subsection (4) of this section;

(d) if the year of income is the 1993-94 year of income or a later year of income - a class B franking debit of the company worked out under subsection (4) of this section.

160AQCD(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:

(a) in the case of a class A franking debit - 0.8; or

(b) in the case of a class B franking debit - 1.0;

`` Initial payment '' means the initial payment of tax;

`` Company tax '' means the company tax assessed to the company for the year of income;

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