Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 207 - Effect of receiving a franked distribution  

Subdivision 207-B - Franked distribution received through certain partnerships and trustees  

Gross-up and tax offset

SECTION 207-45   207-45   Tax offset - distribution flows indirectly to an entity  


An entity to whom a *franked distribution *flows indirectly in an income year is entitled to a *tax offset for that income year that is equal to its *share of the *franking credit on the distribution, if it is:


(a) an individual; or


(b) a *corporate tax entity when the distribution flows indirectly to it; or


(c) the trustee of a trust that is liable to be assessed on a share of, or all or a part of, the trust ' s *net income under section 98, 99 or 99A of the Income Tax Assessment Act 1936 for that income year; or


(ca) (Repealed by No 70 of 2015)


(d) the trustee of a *complying superannuation entity, a *non-complying superannuation fund or a *non-complying approved deposit fund in relation to that income year.

Note:

The entities covered by this section are the ultimate recipients of the distribution because the distribution does not flow indirectly through them to other entities. As a result they are also the ultimate taxpayers in respect of the distribution and are given the tax offset to acknowledge the income tax that has already been paid on the profits underlying the distribution.


 

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