INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 12A - Venture capital franking  

Subdivision E - Venture capital franking declaration  

SECTION 160ASEM   REQUIREMENT TO EMPTY THE VENTURE CAPITAL SUB-ACCOUNT WHEN PDF HAS A VENTURE CAPITAL SUB-ACCOUNT SURPLUS  

160ASEM(1)   [Declaration by PDF]  

If a PDF:

(a) pays dividends under a resolution under which the dividends are to be paid to all shareholders in the PDF; and

(b) makes a declaration under subsection 160AQF(1AAA) in relation to the dividends; and

(c) has a surplus in its venture capital sub-account immediately before it makes the declaration;

the PDF must make a declaration under section 160ASEL so that:

(d) the dividend is venture capital franked to the same extent to which it is class C franked; or

(e) there is a nil surplus, or a deficit, in the sub-account immediately after the declaration is made.

160ASEM(2)   [Amount of debit]  

A venture capital debit of the PDF arises when a dividend is paid if the PDF does not venture capital frank the dividend to the extent required by subsection (1). The amount of the debit is:

Subsection (1) franked amount   −   Actual franked amount

where:

actual franked amount
is the venture capital franked amount of the dividend.

subsection (1) franked amount
is the amount that would have been the venture capital franked amount of the dividend if it had been franked in accordance with subsection (1).