INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 13 - Transitional provisions arising from the introduction of class C franking credits and class C franking debits  

SECTION 160ASG   CONVERSION OF CLASS A FRANKING ACCOUNT BALANCE TO CLASS C FRANKING ACCOUNT BALANCE  

160ASG(1)   Conversion of class A franking surplus.  

If, at a company's class C conversion time:


(a) the company is not a life assurance company; and


(b) the company has a class A franking surplus;

then, immediately after the company's class C conversion time:


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


(d) a class C franking credit of the company also arises that is worked out using the formula:


Amount of class A franking surplus   ×   39 / 61   ×   64 / 36

160ASG(2)   Conversion of class A franking deficit.  

If, at a company's class C conversion time:


(a) the company is not a life assurance company; and


(b) the company has a class A franking deficit;

then, immediately after the company's class C conversion time:


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


(d) a class C franking debit of the company also arises that is worked out using the formula:


Amount of class A franking deficit   ×   39 / 61   ×   64 / 36


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