INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
[ CCH Note: Note that s 160ASEA is the first section of Div 13, and appears out of alphabetical order.]
(a) the dividend is a class C franked dividend; and
(b) the dividend is paid under a resolution under which:
(i) dividends are to be paid to all shareholders in the PDF; and
160ASEL(2) [When franking of dividend formula is used]
(ii) the amount of the dividend per share is the same for each of those dividends.
(a) the PDF declares the dividend to be a venture capital franked dividend to a specified extent in the declaration that it makes under subsection 160AQF(1AAA) in relation to the dividend; and
(b) the extent to which the dividend is declared to be a venture capital franked dividend is the same for all dividends to be paid under the resolution.
Section 160ASEM requires the PDF to declare the dividend to be a venture capital franked dividend if the venture capital sub-account is in surplus when the subsection 160AQF(1AAA) declaration is made.
The PDF may anticipate future credits to the sub-account by making a declaration under this subsection even though the sub-account is in deficit or by making a declaration under this subsection that will put the sub-account into deficit.
If this subsection is not satisfied, the dividend is not a venture capital franked dividend.160ASEL(3) [Formula]
Subject to subsection (4), the extent to which the dividend is venture capital franked is worked out using the formula:
|Amount of dividend ×||Percentage specified under
If the amount worked out under subsection (3) exceeds the class C franked amount of the dividend, the extent to which the dividend is venture capital franked is reduced by the amount of the excess.