INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 7AA - Franking rebates for certain exempt institutions  

SECTION 160ARDAB   CERTAIN EXEMPT INSTITUTIONS ELIGIBLE FOR REBATES IN RELATION TO FRANKING CREDITS  

160ARDAB(1)   [When exempt status disregarded]  

The exempt status of an exempt institution is disregarded for the purposes of determining its entitlement to a rebate under Division 6, 6A or 7 of this Part in relation to a dividend or notional trust amount if:

(a) it satisfies subsection (2), (3), (4), (5) or (6); and

(b) section 160ARDAC (anti-avoidance provision) does not apply to the dividend or notional trust amount; and

(c) subsection (8) (chains of exempt institutions) does not apply to the notional trust amount.

160ARDAB(2)   [S 50-5 and Subdiv 50-B of ITAA '97]  

The institution's exempt status is disregarded if the institution:

(a) is covered by item 1.1, 1.5, 1.5A or 1.5B of the table in section 50-5 of the Income Tax Assessment Act 1997 ; and

(b) is endorsed as exempt from income tax under Subdivision 50-B of the Income Tax Assessment Act 1997 ; and

(c) is a resident.

Note:

Paragraph (c) - see subsection (7).

160ARDAB(3)   [S 30-120 of ITAA '97]  

The institution's exempt status is disregarded if the institution:

(a) is endorsed under paragraph 30-120(a) of the Income Tax Assessment Act 1997 ; and

(b) is a resident.

Note:

Paragraph (b) - see subsection (7).

160ARDAB(4)   [Subdiv 30-B of ITAA '97]  

The institution's exempt status is disregarded if:

(a) the institution's name is specified in a table in a section in Subdivision 30-B of the Income Tax Assessment Act 1997 ; and

(b) the institution has an ABN; and

(c) the institution is a resident.

Note:

Paragraph (c) - see subsection (7).

160ARDAB(5)   [S 30-85(2) of ITAA '97]  

The institution's exempt status is disregarded if:

(a) a declaration by the Treasurer is in force in relation to the institution under subsection 30-85(2) of the Income Tax Assessment Act 1997 ; and

(b) the regulations do not provide that the institution's exempt status is not to be disregarded for the purposes of this Division.

160ARDAB(6)   [Regulations]  

The institution's exempt status is disregarded if the institution is prescribed by the regulations as an institution whose exempt status is to be disregarded for the purposes of this Division.

160ARDAB(7)   [``resident'']  

For the purposes of this section, the institution is a resident if the institution has a physical presence in Australia and, to that extent, incurs its expenditure and pursues its objectives principally in Australia at all times during the year of income in which the dividend is paid or the entitlement to the notional trust amount arises.

160ARDAB(8)   [Another exempt institution]  

The institution's exempt status is not disregarded in relation to a notional trust amount if the notional trust amount arises because of a dividend paid to, or a notional trust amount of, another exempt institution.