INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 205 - Franking accounts  

SECTION 205-1   205-1   Order of events provision  


If a company has a franking account under former Part IIIAA of the Income Tax Assessment Act 1936 (the old account ) at the end of 30 June 2002, the old account is closed off and an opening balance is created in the company ' s franking account under section 205-10 as follows:


(a) any estimated debits in the old account at the end of 30 June 2002 are washed out of the account under section 205-5 ; and


(b) then:


(i) in the case of a company whose 2001-02 franking year ends on 30 June 2002 under former Part IIIAA of the Income Tax Assessment Act 1936 - the company ' s franking account balances are converted under section 205-10 to a tax paid basis; and

(ii) in the case of a company whose 2001-02 franking year ends before 30 June 2002 under former Part IIIAA of the Income Tax Assessment Act 1936 - the company ' s franking account balances are converted under section 205-15 to a tax paid basis.



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