Taxation Laws Amendment Act (No. 3) 1993 (118 of 1993)

Part 4   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 9   Amendments relating to dividend imputation

Subdivision B   Amendments of the Principal Act

103   Penalty for over-franking

Section 160ARX of the Principal Act is amended:

(a) by inserting "class A" before "franking deficit" (wherever occurring);
        

(b) by inserting "class A" before "franking credits";
        

(c) by inserting "class A" before "franked amount of";
        

(d) by inserting "class A" before "required franking amount";
        

(e) by adding at the end the following subsection:
        

"(2) If:

(a) the class B franking deficit of a company at the end of a franking year is more than 10% of the total of the class B franking credits arising during the franking year; and

(b) the class B franked amount of a dividend paid during the franking year to a shareholder in the company exceeded the class B required franking amount for that dividend;

the company is liable to pay, by way of penalty, additional tax equal to 30% of the class B franking deficit tax payable by the company for the franking year.".