Income Tax Assessment Act 1997
View history note
Hide history noteA *franking debit arises in a company ' s *franking account if an amount (the transferred amount ) to which this Division applies is transferred to the company ' s *share capital account. The debit arises immediately before the end of the *franking period in which the transfer of the amount occurs.
197-45(2)
The amount of the *franking debit is calculated in accordance with the formula:
| Transferred amount | × | Applicable franking percentage | ||
| Applicable gross-up rate |
where:
applicable franking percentage
means:
(a) if, before the debit arises, the *benchmark franking percentage for the *franking period in which the transfer of the amount occurs has already been set by section 203-30 - that percentage; or
(b) otherwise - 100%.
applicable gross-up rate
means the company
'
s *corporate tax gross-up rate for the income year in which the franking debit arises.
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