INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 202 - Franking a distribution  

Subdivision 202-C - Which distributions can be franked?  

Operative provisions

SECTION 202-45   202-45   Unfrankable distributions  


The following are unfrankable :


(a) (Repealed by No 101 of 2003)


(b) (Repealed by No 53 of 2015)


(c) where the purchase price on the buy-back of a *share by a *company from one of its *members is taken to be a dividend under section 159GZZZP of that Act - so much of that purchase price as exceeds what would be the market value (as normally understood) of the share at the time of the buy-back if the buy-back did not take place and were never proposed to take place;


(d) a distribution in respect of a *non-equity share;


(e) a distribution that is sourced, directly or indirectly, from a company ' s *share capital account;


(f) an amount that is taken to be an unfrankable distribution under section 215-10 or 215-15 ;


(g) an amount that is taken to be a dividend for any purpose under any of the following provisions:


(i) unless subsection 109RB(6) or 109RC(2) applies in relation to the amount - Division 7A of Part III of that Act (distributions to entities connected with a *private company);

(ii) (Repealed by No 79 of 2007 )

(iii) section 109 of that Act (excessive payments to shareholders, directors and associates);

(iv) section 47A of that Act (distribution benefits - CFCs);


(h) an amount that is taken to be an unfranked dividend for any purpose:


(i) under section 45 of that Act (streaming bonus shares and unfranked dividends);

(ii) because of a determination of the Commissioner under section 45C of that Act (streaming dividends and capital benefits);


(i) a *demerger dividend;


(j) a distribution that section 152-125 or 220-105 says is unfrankable.


 

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