INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 7A - Distributions to entities connected with a private company  

Subdivision DB - Other exceptions  

SECTION 109RC   DIVIDEND MAY BE FRANKED IF TAKEN TO BE PAID BECAUSE OF FAMILY LAW OBLIGATION  

109RC(1)   [ Application]  

This section applies if a dividend is taken to be paid under this Division because of a family law obligation.

109RC(2)   [ Dividend not made unfrankable]  

Subparagraph 202-45(g)(i) of the Income Tax Assessment Act 1997 does not make the amount of the dividend unfrankable.

109RC(3)   [ Conditions for franking]  

The dividend can be franked in accordance with Part 3-6 of the Income Tax Assessment Act 1997 only if:


(a) the dividend is franked at the private company's benchmark franking percentage for the franking period in which the dividend is taken to be paid; or


(b) if the private company does not have a benchmark franking percentage for the period - the dividend is franked at a franking percentage of 100%.

109RC(4)   [ Recipient]  

For the purposes of subsection (3), if the recipient of the dividend is not a member of the private company for the purposes of Part 3-6 of the Income Tax Assessment Act 1997 , treat that recipient as such a member.


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