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

Part 13   DEFERRAL OF INITIAL PAYMENTS OF COMPANY TAX FOR 1993-94

Division 3   Deferred initial payments of tax for 1993-94 to be offset by prior payments of franking deficit tax

173   Reduction of liability for franking deficit tax

Despite section 160AQJ of the Assessment Act, a company's liability for franking deficit tax in respect of the franking year in which the last day of its 1993-94 year of income occurred is to be calculated on the following assumptions:

(a) if:
        

(i) an initial payment of tax payable by the company is reduced under the IP offset provision; and
        

(ii) the company pays that reduced initial payment of tax;
        

the assumption that the amount of that payment had been increased by the amount of the reduction;

(b) if, under the IP offset provision, no initial payment of tax is payable by the company-the assumption that the company had, on the day on which its paragraph 221AQ(1)(a) notice for the 1993-94 year of income was given to the Commissioner, paid that initial payment of tax.