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 316-260   Franking debits to stop the friendly society and its subsidiaries having franking surpluses  

316-260(1)    
A *franking debit arises in the *franking account of the *friendly society or a *wholly-owned subsidiary of the society if the account is in *surplus immediately before the demutualisation resolution day identified under subsection 316-70(4) .

316-260(2)    
The amount of the *franking debit equals the *surplus.

316-260(3)    
The *franking debit arises at the start of that day.