INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS

Division 12A - Venture capital franking

[ CCH Note: Note that s 160ASEA is the first section of Div 13, and appears out of alphabetical order.]

Subdivision E - Venture capital franking declaration

SECTION 160ASEL PDF WITH A VENTURE CAPITAL SUB-ACCOUNT MAY DECLARE CLASS C FRANKED DIVIDEND TO BE A VENTURE CAPITAL FRANKED DIVIDEND

160ASEL(1) [When dividend may be franked]

A PDF that has a venture capital sub-account may frank a dividend paid by the PDF as a venture capital franked dividend in accordance with this section if:

(a) the dividend is a class C franked dividend; and

(b) the dividend is paid under a resolution under which:

(i) dividends are to be paid to all shareholders in the PDF; and

(ii) the amount of the dividend per share is the same for each of those dividends.

160ASEL(2) [When franking of dividend formula is used]

The dividend is venture capital franked to the extent of the amount worked out using the formula in subsection (3) if:

(a) the PDF declares the dividend to be a venture capital franked dividend to a specified extent in the declaration that it makes under subsection 160AQF(1AAA) in relation to the dividend; and

(b) the extent to which the dividend is declared to be a venture capital franked dividend is the same for all dividends to be paid under the resolution.

Note 1:

Section 160ASEM requires the PDF to declare the dividend to be a venture capital franked dividend if the venture capital sub-account is in surplus when the subsection 160AQF(1AAA) declaration is made.

Note 2:

The PDF may anticipate future credits to the sub-account by making a declaration under this subsection even though the sub-account is in deficit or by making a declaration under this subsection that will put the sub-account into deficit.

Note 3:

If this subsection is not satisfied, the dividend is not a venture capital franked dividend.

160ASEL(3) [Formula]

Subject to subsection (4), the extent to which the dividend is venture capital franked is worked out using the formula:

Amount of dividend ×

Percentage specified under
paragraph (2)(a)

160ASEL(4) [Reduction by amount of excess]

If the amount worked out under subsection (3) exceeds the class C franked amount of the dividend, the extent to which the dividend is venture capital franked is reduced by the amount of the excess.

View history note

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