Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 202 - Franking a distribution  

Subdivision 202-A - Franking a distribution  

Operative provisions

SECTION 202-5  

202-5   Franking a distribution  

An entity franks a *distribution if:

(a) the entity is a *franking entity that satisfies the *residency requirement when the distribution is made; and

(b) the distribution is a *frankable distribution; and

(c) the entity allocates a *franking credit to the distribution.

Note 1:

Division 205 deals with a corporate tax entity ' s franking account and sets out when credits, known as franking credits, and debits, known as franking debits, arise in that account.

Note 2:

The mechanism by which an entity allocates a franking credit to a distribution (for example, whether it is done by resolution or some other means) is determined by the entity.