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 316-250   What this Subdivision is about  


In many cases, income from demutualisation is assessed through the CGT provisions rather than as ordinary income or other statutory income.

Franking debits arise for the friendly society and its subsidiaries to ensure they do not enjoy a franking surplus. Franking debits and credits arise to negate credits and debits from things attributable to the time before demutualisation.


TABLE OF SECTIONS
316-255 General taxation consequences of issue of demutualisation assets etc.
316-260 Franking debits to stop the friendly society and its subsidiaries having franking surpluses
316-265 Franking debits to negate franking credits from some distributions to friendly society and subsidiaries
316-270 Franking debits to negate franking credits from post-demutualisation payments of pre-demutualisation tax
316-275 Franking credits to negate franking debits from refunds of tax paid before demutualisation


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