INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2A - Exempting companies and former exempting companies  

SECTION 160AQCNO   CONVERSION OF EXEMPTING DEFICIT TO FRANKING DEBIT  

160AQCNO(1)   [Class A exempting deficit]  

If, apart from this subsection, a former exempting company would have a class A exempting deficit at the end of a franking year, then, immediately before the end of that franking year:

(a) there is taken to have arisen a class A exempting credit of the company equal to the deficit; and

(b) there is taken to have arisen a class A franking debit of the company equal to the deficit.

160AQCNO(2)   [Class C exempting deficit]  

If, apart from this subsection, a former exempting company would have a class C exempting deficit at the end of a franking year, then, immediately before the end of that franking year:

(a) there is taken to have arisen a class C exempting credit of the company equal to the deficit; and

(b) there is taken to have arisen a class C franking debit of the company equal to the deficit.