Taxation Laws Amendment Act (No. 4) 1995 (Repealed) (171 of 1995)

SCHEDULE 2   AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936 RELATING TO DIVIDEND IMPUTATION

151.   Section 160ARX

Add at the end:

"(3) If:

(a) the class C franking deficit of a company at the end of a franking year is more than 10% of the total of the class C franking credits arising during the franking year; and

(b) the class C franked amount of a dividend paid during the franking year to a shareholder in the company exceeded the class C required franking amount for that dividend;

the company is liable to pay, by way of penalty, additional tax equal to 30% of the class C franking deficit tax that is payable by the company for the franking year.".