INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2A - Exempting companies and former exempting companies  

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

160AQCNK(1)   [Class A exempting surplus]  

If:

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

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

then, immediately after it becomes an exempting company:

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

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

160AQCNK(2)   [Class C exempting surplus]  

If:

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

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

then, immediately after it becomes an exempting company:

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

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