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 160ASI   CHANGES TO FRANKING ACCOUNT BALANCES AFTER A COMPANY'S CLASS C CONVERSION TIME  

160ASI(1)   Class A franking credit arising after class C conversion time.  

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

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

(b) a class A franking credit of the company arises under this Part (apart from under this section, subsection 160ASG(2) , subsection 160ASJ(2) or subsection 160ASK(1) );

then, at that time:

(c) a class A franking debit arises equal to the amount of the class A franking credit; and

(d) a class C franking credit also arises equal to the amount worked out using the formula:

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

160ASI(2)   Class A franking debit arising after class C conversion time.  

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

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

(b) a class A franking debit of the company arises under this Part (apart from under this section, subsection 160AQB(1) , subsection 160ASG(1) , subsection 160ASJ(1) or subsection 160ASK(1) );

then, at that time:

(c) a class A franking credit arises equal to the amount of the class A franking debit; and

(d) a class C franking debit also arises equal to the amount worked out using the formula:

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

160ASI(3)   Class B franking credit arising after class C conversion time.  

If, at a particular time after a company's class C conversion time, a class B franking credit of a company arises under this Part (apart from under this section, subsection 160ASH(2) or subsection 160ASK(2) ):

(a) a class B franking debit arises at that time equal to the amount of the class B franking credit; and

(b) a class C franking credit also arises at that time equal to the amount worked out using the formula:

Amount of class B franking credit   ×   33 / 67   ×   64 / 36

160ASI(4)   Class B franking debit arising after class C conversion time under provisions other than subsection 160AQB(2) .  

If, at a particular time after a company's class C conversion time, a class B franking debit of a company arises under this Part (apart from under this section, subsection 160AQB(2) , subsection 160ASH(1) or subsection 160ASK(2) ):

(a) a class B franking credit arises at that time equal to the amount of the class B franking debit; and

(b) a class C franking debit also arises at that time equal to the amount worked out using the formula:

Amount of class B franking debit   ×   33 / 67   ×   64 / 36

Note:

Subsection (5) deals with class B debits arising from the payment of class B franked dividends.

160ASI(5)   Class B franking debit arising under subsection 160AQB(2) after class C conversion time.  

If, at a particular time after the company's class C conversion time, a class B franking debit of a company arises under subsection 160AQB(2) (and subsection 160ASK(2) does not apply), a class B franking credit and a class C franking debit of the company each equal to the amount of the class B franking debit arise at that time.