Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-6
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THE IMPUTATION SYSTEM
If:
(a) a *franked distribution is made to an entity; and
(b) the distribution does not *flow indirectly through the entity to another entity; and
(c) the distribution is *exempt income or *non-assessable non-exempt income in the hands of the entity;
(d) the amount of the *franking credit on the distribution is not included in the assessable income of the entity under section 207-20 ; and
(e) the entity is not entitled to a *tax offset under this Division because of the distribution.
If:
(a) a *franked distribution is made to an entity; and
(b) the distribution does not *flow indirectly through the entity to another entity; and
(c) a part of the distribution (the relevant part ) is *exempt income or *non-assessable non-exempt income in the hands of the entity;
(d) the amount of the distribution is taken to have been reduced by the relevant part; and
(e) the amount of the *franking credit on the distribution is to be worked out as follows:
Division 207
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Effect of receiving a franked distribution
Subdivision 207-D
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No gross-up or tax offset where distribution would not be taxed
Operative provisions
SECTION 207-90
Distribution that is made to an entity
Whole of distribution not assessable
207-90(1)
If:
(a) a *franked distribution is made to an entity; and
(b) the distribution does not *flow indirectly through the entity to another entity; and
(c) the distribution is *exempt income or *non-assessable non-exempt income in the hands of the entity;
then, for the purposes of this Act:
(d) the amount of the *franking credit on the distribution is not included in the assessable income of the entity under section 207-20 ; and
(e) the entity is not entitled to a *tax offset under this Division because of the distribution.
Part of distribution not assessable
207-90(2)
If:
(a) a *franked distribution is made to an entity; and
(b) the distribution does not *flow indirectly through the entity to another entity; and
(c) a part of the distribution (the relevant part ) is *exempt income or *non-assessable non-exempt income in the hands of the entity;
then, for the purposes of this Act:
(d) the amount of the distribution is taken to have been reduced by the relevant part; and
(e) the amount of the *franking credit on the distribution is to be worked out as follows:
*Franked distribution
apart from this section - Relevant part *Franked distribution apart from this section |
× | *Franking credit
on the *franked distribution apart from this section |
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