INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2A - Exempting companies and former exempting companies  

SECTION 160AQCNL   CONVERSION OF EXEMPTING DEFICIT TO FRANKING DEBIT WHEN FORMER EXEMPTING COMPANY BECOMES AN EXEMPTING COMPANY  

160AQCNL(1)   [Class A exempting deficit]  

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 deficit;

then, immediately after it becomes an exempting company:

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

(d) there arises a class A franking debit of the company equal to the deficit.

160AQCNL(2)   [Class C exempting deficit]  

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 deficit;

then, immediately after it becomes an exempting company:

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

(d) there arises a class C franking debit of the company equal to the deficit.