INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 7B - Tainted share capital accounts  

Subdivision B - Companies other than life assurance companies  

SECTION 160ARDS   CONSEQUENCES OF ELECTION TO UNTAINT - FRANKING DEBIT  

160ARDS(1)   Company with only lower tax shareholders.  

If a company with only lower tax shareholders elects to untaint its share capital account under section 160ARDR , a class C franking debit of the company arises on the day of the election equal to the tainting amount less the sum of:


(a) the amount of the class C franking debit (if any) that arose under section 160ARDQ when the share capital account most recently became tainted; and


(b) if the company subsequently transferred one or more further amounts to its share capital account from any of its other accounts - the amounts of any class C franking debits that arose under section 160ARDQ when that further amount or those further amounts were transferred.

160ARDS(2)   Company with higher tax shareholders.  

If a company with higher tax shareholders elects to untaint its share capital account under section 160ARDR , a class C franking debit of the company arises on the day of the election equal to the amount specified in the election.


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