INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2A - Exempting companies and former exempting companies  

SECTION 160AQCNG   CONVERSION OF FRANKING SURPLUS TO EXEMPTING CREDIT WHEN AN EXEMPTING COMPANY BECOMES A FORMER EXEMPTING COMPANY  

160AQCNG(1)   [Where class A franking surplus]  

If:

(a) an exempting company becomes a former exempting company; and

(b) at the time when it becomes a former exempting company it has a class A franking surplus;

then, subject to section 160AQCNI , immediately after it became a former exempting company:

(c) there arises a class A franking debit of the company equal to the surplus; and

(d) there arises a class A exempting credit of the company equal to the surplus.

160AQCNG(2)   [Where class C franking surplus]  

If:

(a) an exempting company becomes a former exempting company; and

(b) at the time when it becomes a former exempting company it has a class C franking surplus;

then, subject to section 160AQCNI , immediately after it became a former exempting company:

(c) there arises a class C franking debit of the company equal to the surplus; and

(d) there arises a class C exempting credit of the company equal to the surplus.

160AQCNG(3)   [Calculations]  

For the purpose of calculating the franking debit referred to in paragraph (1)(c) or (2)(c) and the exempting credit referred to in paragraph (1)(d) or (2)(d), in relation to the company, the franking surplus referred to in paragraph (1)(b) or (2)(b) is taken:

(a) to be increased by so much of any franking credit of the company; and

(b) to be reduced by so much of any franking debit of the company;

that arose during the year of income in which the company became a former exempting company as is not attributable to a period in which, or to an event taking place at a time when, the company was an exempting company or would have been an exempting company if paragraph 160APHBA(a) had not been enacted.

160AQCNG(4)   [Sec 160ASI class C franking credit]  

For the purposes of subsection (3), a class C franking credit that arose under section 160ASI is taken to be attributable to a period or time to the extent to which the class A franking credit or class B franking credit because of which the class C franking credit arose was attributable to that period or time.