Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 10   Franked distributions received through certain partnerships and trustees

Part 3   Amendments commencing on 30 June 2003

Income Tax Assessment Act 1997

35   Subsections 220-400(4) and (5)

Repeal the subsections, substitute:

What happens if certain provisions apply

(4) Subsections (2) and (3) do not apply to the recipient in relation to the *franked distribution if one or more of the following provisions also apply to the recipient in relation to the distribution:

(a) subsection 207-90(1);

(b) subsection 207-90(2);

(c) subsection 207-145(1);

(d) subsection 207-145(2).

(5) If subsection 207-90(2) or 207-145(2) would also apply to the recipient in relation to the *franked distribution, apply that subsection on the basis that:

(a) the amount of the *franking credit on the distribution;

had been reduced by:

(b) so much of the supplementary dividend as does not exceed that amount of the franking credit.

Relationship with sections 207-20, 207-90 and 207-145

(6) Sections 207-20, 207-90 and 207-145 have effect subject to this section.