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.


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