INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2 - Franking surplus or deficit  

Subdivision B - General provisions on franking credits  

SECTION 160APVBB   LIFE ASSURANCE COMPANIES - CREDIT REDUCING SECTION 160APYBB DEBIT  

160APVBB(1)   [When franking credit arises]  

If, on a particular day, a franking debit of a life assurance company arises under section 160APYBB in relation to the payment or application of a foreign tax credit in respect of tax paid or payable by a company in respect of a year of income, there arises on that day whichever of the following is applicable:

(a) if the year of income is the 1992-93 year of income or an earlier year of income - a class A franking credit of the company worked out under subsection (2) of this section;

(b) if the year of income is the 1993-94 year of income or the 1994-95 year of income - a class B franking credit of the company worked out under subsection (2) of this section;

(c) if the year of income is the 1995-96 year of income or a later year of income - a class C franking credit of the company worked out under subsection (2) of this section.

160APVBB(2)   [Amount of franking credit]  

The amount of the franking credit is equal to the adjusted amount in relation to the amount calculated using the formula:

where:

`` Statutory factor '' means:

(a) in the case of a class A franking credit - 0.8; or

(b) in the case of a class B franking credit or a class C franking credit - 1.0;

`` Foreign tax credit paid or applied '' means the amount paid or applied;

`` Standard component of foreign tax credit paid or applied '' means so much of the foreign tax credit paid or applied as is attributable to the standard component in relation to the year of income.