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 160APVD   LIFE ASSURANCE COMPANIES - CREDIT REDUCING SECTION 160APZ DEBIT  

160APVD(1A)   [No application if s 160AQCNCH applies]  

This section does not apply to a franking debit if section 160AQCNCH (transitional provision for late balancing life assurance company for 1999-2000 year of income) applies to the franking debit.

160APVD(1)   [Class A franking credit arises]  

Where, on a particular day, a class A franking debit of a life assurance company arises under section 160APZ in relation to a reduction in the company tax of the company for a year of income, there arises on that day a class A franking credit of the company equal to the adjusted amount in relation to the amount calculated using the formula:

where:

`` Overall reduction '' means the amount of the reduction;

`` Standard component of reduction '' means so much of the amount of the reduction as is attributable to the standard component.

160APVD(2)   [Class B franking credit arises]  

If, on a particular day, a class B franking debit of a life assurance company arises under section 160APZ in relation to a reduction in the company tax of the company for a year of income, there arises on that day a class B franking credit of the company equal to the adjusted amount in relation to the amount worked out using the formula:

where:

`` Statutory factor '' means 1.0;

`` Overall reduction '' means the amount of the reduction;

`` Standard component of reduction '' means so much of the amount of the reduction as is attributable to the standard component.

160APVD(3)   [Class C franking credit arises]  

If, on a particular day, a class C franking debit of a life assurance company arises under section 160APZ in relation to a reduction in the company tax of the company for a year of income, there arises on that day a class C franking credit of the company equal to the adjusted amount in relation to the amount worked out using the formula:

where:

Statutory factor means 1.0.

Overall reduction means the amount of the reduction.

Standard component of reduction means so much of the amount of the reduction as is attributable to the standard component.