Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-32 - CO-OPERATIVES AND MUTUAL ENTITIES  

Division 316 - Demutualisation of friendly society health or life insurers  

Subdivision 316-F - Non-CGT consequences of the demutualisation  

Guide to Subdivision 316-F

SECTION 316-260   Franking debits to stop the friendly society and its subsidiaries having franking surpluses  

316-260(1)    
A * franking debit arises in the * franking account of the * friendly society or a * wholly-owned subsidiary of the society if the account is in * surplus immediately before the demutualisation resolution day identified under subsection 316-70(4) .

316-260(2)    
The amount of the * franking debit equals the * surplus.

316-260(3)    
The * franking debit arises at the start of that day.