Income Tax Assessment Act 1936


Division 2 - Income  

Subdivision D - Dividends  


Company may establish account

A company may establish an unfranked non-portfolio dividend account. Account surplus

An unfranked non-portfolio dividend account surplus exists for a company at a particular time if the company's total unfranked non-portfolio dividend credits arising before that time exceed its total unfranked non-portfolio dividend debits arising before that time.

The amount of the surplus is equal to the amount of the excess. Credits

An unfranked non-portfolio dividend credit arises for a company if:

(a) the company is paid an unfranked non-portfolio dividend; and

(b) the company is not a group company in relation to the company that paid the dividend in relation to the year of income in which the dividend is paid; and

(c) ignoring the amendments made by Schedule 1 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 , but for subsection 46AB(1) or 46AC(2) or subparagraph 46F(2)(a)(i) of this Act as in force just before the commencement of those amendments, the company would have been entitled to a rebate under section 46 of this Act as so in force in respect of the unfranked amount of the dividend.

The amount of the credit is the unfranked amount of the dividend. The credit arises when the dividend is paid to the company.


An unfranked non-portfolio dividend debit arises for a company if the company makes a declaration under paragraph 46FA(1)(f) in relation to a dividend paid on a particular day. The amount of the debit is the flow-on amount under subsection 46FA(2) . The debit arises when the declaration is made. Definitions


In this section:

group company
has the same meaning as in former section 160AFE as in force immediately before 1 July 2002.

non-portfolio dividend
has the same meaning as in section 317 .

unfranked amount
of a dividend (including an unfrankable distribution within the meaning of section 202-45 of the Income Tax Assessment Act 1997 ) means the amount of the dividend less the franked part.

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