Taxation Laws Amendment Act (No. 3) 1993 (118 of 1993)

Part 13   DEFERRAL OF INITIAL PAYMENTS OF COMPANY TAX FOR 1993-94

Division 3   Deferred initial payments of tax for 1993-94 to be offset by prior payments of franking deficit tax

169   Deferred initial payments of tax for 1993-94 to be offset by prior payments of franking deficit tax

 

(1) This section applies if:
            

(a) a relevant entity has given a paragraph 221AQ(1)(a) notice for the 1993-94 year of income; and
            

(b) apart from this section, the relevant entity is liable to make an initial payment of tax in respect of its taxable income of the year of income not later than the 28th day of the 3rd month next following the month in which the last day of that year of income occurs; and
            

(c) before the notice was given, the relevant entity paid an amount (the "FDT amount") in respect of franking deficit tax in respect of the franking year in which the last day of that year of income occurs.
            

      

(2) If the relevant entity is not a life assurance company and the amount of the initial payment of tax does not exceed the FDT amount, the relevant entity is not liable to pay the initial payment of tax.
            

      

(3) If the relevant entity is not a life assurance company and the amount of the initial payment of tax exceeds the FDT amount, the initial payment of tax is taken to be an amount equal to the excess.
            

      

(4) If:
            

(a) the relevant entity is a life assurance company; and
            

(b) the amount of the initial payment of tax does not exceed the sum of:
            

(i) the FDT amount; and
            

(ii) the eligible fund component;
            

the initial payment of tax is taken to be an amount equal to the eligible fund component.

      

(5) If:
            

(a) the relevant entity is a life assurance company; and
            

(b) the amount of the initial payment of tax exceeds the sum of:
            

(i) the FDT amount; and
            

(ii) the eligible fund component;
            

the initial payment of tax is taken to be an amount equal to the amount by which the initial payment of tax exceeds the FDT amount.

      

(6) For the purposes of this section, the eligible fund component of a life assurance company is so much of the initial payment of tax as is attributable to so much of the estimated tax as relates to the following components of taxable income:
            

(a) the CS/RA component (within the meaning of Division 8 of Part III of the Assessment Act);
            

(b) the AD/RLA component (within the meaning of Division 8 of Part III of the Assessment Act);
            

(c) the NCS component (within the meaning of Division 8 of Part III of the Assessment Act).