INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 219 - Imputation for life insurance companies  

Subdivision 219-B - Franking accounts of life insurance companies  

SECTION 219-30   Franking debits  

219-30(1)  


The table in section 205-30 (except items 2 and 2A) applies to a *life insurance company in the same way as it applies to any other company.

219-30(2)  


The following table sets out when a *franking debit arises under this section in the *franking account of a *life insurance company.


Franking debits in the franking account
Item If: A debit of: Arises:
1 a *franking credit arises for the company under item 1 of the table in section 219-15 (*payment of a PAYG instalment) the amount of the franking credit on the company's *assessment day for the income year mentioned in that item
2 the company *receives a refund of income tax; and

the company satisfies the *residency requirement for the income year to which the refund relates; and

the company was a *franking entity for the whole or part of that income year
that part of the refund that is attributable to:

(a) the *shareholders ' share of the income tax liability of the company for that income year; and

(b) the period during which the company was a franking entity
on the day on which the refund is received
3 the company *receives a *tax offset refund; and
the company does not satisfy the *residency requirement for the income year to which the refund relates; and
the company was a *franking entity for the whole or part of that income year; and
the company ' s *franking account is in *surplus on the day on which the refund is received
the lesser of:
(a) that part of the refund that is attributable to:
    (i) the *shareholders ' share of the income tax liability of the company for that income year; and
    (ii) the period during which the company was a franking entity; and
(b) the amount of the *franking surplus
on the day on which the refund is received
4 the company *receives a refund of diverted profits tax; and
the company satisfies the *residency requirement for the income year to which the refund relates; and
the company was a *franking entity for the whole or part of that income year
that part of the refund that is attributable to:
(a) the *shareholders ' share of the income tax liability of the company for that income year; and
(b) the period during which the company was a franking entity;
multiplied by the proportion worked out under subsection (3)
on the day on which the refund is received

Note 1:

On the assessment day, a franking debit that arises under item 1 of this table reverses the effect of a franking credit that arose under item 1 of the table in section 219-15 .

Note 2:

Section 219-50 tells you how to work out the part of an amount that is attributable to the shareholders ' share of the income tax liability of the company for the income year.

219-30(3)  


The proportion is the standard corporate tax rate (within the meaning of Part IVA of the Income Tax Assessment Act 1936 ) divided by 40%.

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