Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-32 - CO-OPERATIVES AND MUTUAL ENTITIES  

Division 316 - Demutualisation of friendly society health or life insurers  

Subdivision 316-F - Non-CGT consequences of the demutualisation  

Guide to Subdivision 316-F

SECTION 316-270   Franking debits to negate franking credits from post-demutualisation payments of pre-demutualisation tax  

316-270(1)    
This section applies if a * franking credit arises in the * franking account of the * friendly society or a * wholly-owned subsidiary of the society because, on or after the demutualisation resolution day identified under subsection 316-70(4) , the society or subsidiary * pays a PAYG instalment, or * pays income tax, that is wholly or partly attributable to a period before that day.

316-270(2)    
A * franking debit arises in that account.

316-270(3)    
The amount of the * franking debit is so much of the * franking credit as is attributable to the period before that day.

316-270(4)    
The * franking debit arises at the same time as the * franking credit arises.