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

Part 4   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 9   Amendments relating to dividend imputation

Subdivision B   Amendments of the Principal Act

81   Insertion of new section

Before section 160AQE of the Principal Act the following section is inserted in Division 4 of Part IIIAA:

How to work out the class A required franking amount and the class B required franking amount

"160AQDB.(1) For the purposes of this Part, the class A required franking amount for a dividend paid to a shareholder in a company is the amount that would be the required franking amount for the dividend if:

(a) the reference in section 160AQE to the franking surplus of the company at the beginning of the reckoning day for the dividend were, by express provision, confined to the class A franking surplus of the company at the beginning of that day; and

(b) each reference in section 160AQE to a franked amount were, by express provision, confined to a class A franked amount; and

(c) each reference in section 160AQE to a required franking amount were, by express provision, confined to a class A required franking amount; and

(d) each reference in section 160AQE to a franking debit were, by express provision, confined to a class A franking debit.

"(2) For the purposes of this Part, the class B required franking amount for a dividend paid to a shareholder in a company is worked out using the formula:

Gross required franking amount - Class A required franking amount

where:

'Gross required franking amount' means the required franking amount for the dividend;

'Class A required franking amount' means the class A required franking amount for the dividend.".