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

93   Adjustment where franking credit arises

Section 160AR of the Principal Act is amended:

(a) by inserting in paragraph (1)(b) "class A" before "franking credit";
        

(b) by inserting in subsection (1) "class A" before "potential rebate amount";
        

(c) by inserting after subsection (1) the following subsection:
        

"(1A) If:

(a) a trust amount is included in the assessable income of a company of a year of income; and

(b) a class B franking credit arises under section 160APQ in relation to the trust amount;

an amount equal to so much of the class B potential rebate amount in relation to the trust amount as does not exceed the trust amount is allowable as a deduction from the assessable income of the company of the year of income.";

(d) by inserting in paragraph (2)(b) "class A" before "franking credit";
        

(e) by inserting in subsection (2) "class A" before "potential rebate amount";
        

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

"(3) If:

(a) a partnership amount is included in, or allowable as a deduction from, the assessable income of a company of a year of income; and

(b) a class B franking credit arises under section 160APQ in relation to the partnership amount;

the class B potential rebate amount in relation to the partnership amount is allowable as a deduction from the assessable income of the company of the year of income.".