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 160APVC   LIFE ASSURANCE COMPANIES - CREDIT REDUCING SECTION 160APYB DEBIT  

160APVC(1)   [When franking credit arises]  

Where, on a particular day, a franking debit of a life assurance company arises under section 160APYB in relation to an amount received as a refund in relation to a year of income (in subsection (2) of this section called the ``current 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 a later year of income - a class B franking credit of the company worked out under subsection (2) of this section.

160APVC(2)   [Amount of franking credit]  

The amount of the franking credit is equal to the adjusted amount in relation to the amount calculated for the current year of income 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 - 1.0;

`` Refunded amount '' means the amount received as a refund;

`` Preceding year's company tax '' means the company tax assessed to the company for the year of income (in this subsection called the ``preceding year of income'' ) that immediately preceded the current year of income;

`` Standard component of preceding year's company tax '' means so much of the company tax assessed to the company for the preceding year of income as is attributable to the standard component.

160APVC(3)   [Further franking credit]  

If:

(a) on a particular day, a franking debit of a life assurance company arises under section 160APYB in relation to an amount received as a refund in relation to a year of income; and

(b) on or after that day, a notice of an original company tax assessment for the year of income is served, or deemed to be served, on the company;

there arises, on the day on which the notice is served or deemed to be served, whichever of the following is applicable:

(c) 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 (4) of this section;

(d) if the year of income is the 1993-94 year of income or a later year of income - a class B franking credit of the company worked out under subsection (4) of this section.

160APVC(4)   [Amount of further 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 - 1.0;

`` Refunded amount '' means the amount received as a refund;

`` Company tax '' means the company tax assessed to the company for the year of income;

`` Standard component of company tax '' means so much of the company tax assessed to the company for the year of income as is attributable to the standard component.