INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 7B - Tainted share capital accounts  

Subdivision C - Life assurance companies  

SECTION 160ARDW   ELECTION TO UNTAINT SHARE CAPITAL ACCOUNT  

160ARDW(1)   [Election to untaint]  

A company with a tainted share capital account may elect in writing to untaint that account. The election can be made at any time but cannot be revoked.

160ARDW(2)   [Information to be specified]  

The election must specify:

(a) the amount of the class A franking debit to arise under paragraph 160ARDX(a); and

(b) the amount of the class C franking debit to arise under paragraph 160ARDX(b).

160ARDW(3)   Company with only lower tax shareholders.  

For a company with only lower tax shareholders, the sum of the franking debits specified in the election under subsection (2) must equal the tainting amount less the sum of:

(a) the amount of the class A franking debit (if any) that arose under section 160ARDV when the share capital account most recently became tainted; and

(b) if the company subsequently transferred one or more further amounts to its share capital account from any of its other accounts - the amounts of any class A franking debits that arose under section 160ARDV when that further amount or those further amounts were transferred; and

(c) the amount of the class C franking debit (if any) that arose under section 160ARDV when the share capital account most recently became tainted; and

(d) if the company subsequently transferred one or more further amounts to its share capital account from any of its other accounts - the amounts of any class C franking debits that arose under section 160ARDV when that further amount or those further amounts were transferred.

160ARDW(4)   Company with higher tax shareholders.  

The sum of the franking debits that may be specified under subsection (2) must not exceed the tainting amount less the sum of:

(a) the amount of the class A franking debit (if any) that arose under section 160ARDV when the share capital account most recently became tainted; and

(b) if the company subsequently transferred one or more further amounts to its share capital account from any of its other accounts - the amounts of any class A franking debits that arose under section 160ARDV when that further amount or those further amounts were transferred; and

(c) the amount of the class C franking debit (if any) that arose under section 160ARDV when the share capital account most recently became tainted; and

(d) if the company subsequently transferred one or more further amounts to its share capital account from any of its other accounts - the amounts of any class C franking debits that arose under section 160ARDV when that further amount or those further amounts were transferred.