INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2 - Franking surplus or deficit  

Subdivision CB - Franking debits of life assurance companies where relevant year of income is later than 1999-2000  

SECTION 160AQCNCD   REFUNDS, AND AMENDED ASSESSMENTS, FOR 2000-01 AND LATER YEARS OF INCOME  

160AQCNCD(1)   Refund.  

If:

(a) a class C franking credit of a company arises under section 160APVJ , 160APVK , 160APVL or 160APVM because of:

(i) a payment of a PAYG instalment in respect of a year of income; or

(ii) the application of a PAYG instalment variation credit to reduce the company's liability for a PAYG instalment in respect of a year of income; or

(iii) the payment by the company of an amount of company tax in respect of a year of income; and

(b) the company receives a refund of the amount paid or applied on a day (the refund day ) that occurs on or after the day on which the company's company tax in respect of that year of income is assessed; and

(c) the amount refunded or applied is not attributable to a reduction of company tax covered by subsection (3); and

(d) section 160AQCNCI (transitional provision for early balancing life assurance company for 2000-01 year of income) does not apply to the refund;

a class C franking debit of the company arises on the refund day.

160AQCNCD(2)   Amount of class C franking debit.  

The amount of the class C franking debit that arises under subsection (1) is equal to the adjusted amount in relation to so much of the amount refunded as represents a return to the company of an amount paid or applied to satisfy the company's liability to pay:

(a) a company tax instalment; or

(b) company tax;

in respect of shareholders' funds income for that year of income.

160AQCNCD(3)   Amended assessment.  

If a class C franking debit of a life assurance company arises on a particular day under section 160APZ in relation to the 2000-01 year of income or a later year of income because of a reduction in the company's company tax, there arises on that day:

(a) a class C franking credit of the company equal to the amount of that class C franking debit; and

(b) a class C franking debit of the company equal to the adjusted amount in relation to so much of the reduction as represents a return to the company of an amount paid or applied to satisfy the company's liability to pay:

(i) a company tax instalment; or

(ii) company tax;

in respect of shareholders' funds income for that year of income.

A class C franking debit does not arise under paragraph (b) if section 160AQCNCI (transitional provision for early balancing life assurance company for 2000-01 year of income) applies to the reduction.