INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 14 - Transitional provisions for conversion to 34% rate on 1 July 2000  

SECTION 160ATD   SPECIAL TREATMENT OF SOME FRANKING CREDITS AND DEBITS ARISING ON OR AFTER 1 JULY 2000  

160ATD(1)   [Adjustments that are made]  

If:

(a) any of the events specified in the event column of the following table occurs in relation to a company on or after 1 July 2000 and before 1 July 2001; and

(b) the event:

(i) is not a franking credit or debit arising under this Division; and

(ii) is not a franking credit arising under section 160APL (carry-forward of franking surplus); and

(iii) is not a franking debit arising under section 160APX (under-franking of a dividend), 160AQB (payment of a franked dividend), 160AQCB, 160AQCBA, 160AQCNA or 160AQCNB (dividend streaming or franking credit trading arrangements), 160AQCC (on-market share buy back arrangements) or 160AQCNC (private company distributions treated as dividends);

the adjustments specified in the adjustments column for that item are made to the company's franking accounts:

Certain credits and debits arising on or after 1 July 2000 and before 1 July 2001
Item	Event	Adjustments
1	a class A franking credit of the company arises under this Part	(a)	a class A franking debit arises equal to the amount of the class A franking credit; and
		(b)	a class C franking credit also arises equal to the amount worked out using the formula:
			Amount of the class A franking credit	×	39   61	×	66   34
.
2	a class A franking debit of the company arises under this Part	(a)	a class A franking credit arises equal to the amount of the class A franking debit; and
		(b)	a class C franking debit also arises equal to the amount worked out using the formula:
			Amount of the class A franking debit	×	39   61	×	66   34
.
3	a class B franking credit of a company arises under this Part	(a)	a class B franking debit arises at that time equal to the amount of the class B franking credit; and
		(b)	a class C franking credit also arises at that time equal to the amount worked out using the formula:
			Amount of the class B franking credit	×	33   67	×	66   34
.
4	a class B franking debit of a company arises under this Part	(a)	a class B franking credit arises at that time equal to the amount of the class B franking debit; and
		(b)	a class C franking debit also arises at that time equal to the amount worked out using the formula:
			Amount of the class B franking debit	×	33   67	×	66   34
.
5	a class C franking credit of a company arises under this Part and the amount of the credit reflects an applicable general company tax rate of 36%	(a)	a class C franking debit arises at that time equal to the amount of the class C franking credit; and
		(b)	a class C franking credit also arises at that time equal to the amount worked out using the formula:
			Amount of the class C franking credit	×	36   64	×	66   34
.
6	a class C franking debit of a company arises under this Part and the amount of the debit reflects an applicable general company tax rate of 36%	(a)	a class C franking credit arises at that time equal to the amount of the class C franking debit; and
		(b)	a class C franking debit also arises at that time equal to the amount worked out using the formula:
			Amount of the class C franking debit	×	36   64	×	66   34
.
7	a venture capital credit of the PDF arises under this Part and the amount of the credit reflects an applicable general company tax rate of 36%	(a)	a venture capital debit of the PDF arises at that time equal to the amount of the venture capital credit; and
		(b)	a venture capital credit of the PDF also arises at that time equal to the amount worked out using the formula:
			Amount of the venture capital credit	×	36   64	×	66   34
.
8	a venture capital debit of a PDF arises under this Part and the amount of the debit reflects an applicable general company tax rate of 36%	(a)	a venture capital credit of the PDF arises at that time equal to the amount of the venture capital debit; and
		(b)	a venture capital debit also arises at that time equal to the amount worked out using the formula:
			Amount of the venture capital debit	×	36   64	×	66   34

160ATD(2)   [Applicable general company tax rate reflected]  

For the purposes of items 5, 6, 7 and 8 of the table in subsection (1), the amount of a credit or debit reflects an applicable general company tax rate of 36% if:

(a) the applicable general company tax rate used to calculate the amount of the debit or credit is 36%; or

(b) (Omitted by No 89 of 2000)

(c) (Omitted by No 89 of 2000)

(d) the credit or debit is equal to the amount of an earlier debit or credit and the earlier debit or credit reflected an applicable general company tax rate of 36%.

Note 1:

Paragraph (a) - the applicable general company tax rate will always be involved in the calculation of a credit or debit if an ``adjusted amount'' is used in the calculation.

Note 2:

Paragraph (d) covers provisions such as sections 160APV , 160APVB , 160APVF , 160AQCA , 160AQCCB and 160AQCM .