Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 219 - Imputation for life insurance companies  

Subdivision 219-B - Franking accounts of life insurance companies  

SECTION 219-50   Amount attributable to shareholders ' share of income tax liability  

219-50(1)  
Subsection (2) applies to a *life insurance company in relation to the payment or refund mentioned in an item of a table in this Subdivision (except item 1 of the table in section 219-15 ).

Note:

The operation of this section is affected by section 219-75 if a tax offset under section 205-70 is applied to work out the company ' s income tax liability.

219-50(2)  


For the purposes of this Part, the part of the payment or refund that is attributable to the *shareholders ' share of the *income tax liability of the company for an income year must be worked out as follows: Method statement

Step 1.

Work out the part of the company ' s total *income tax liability for the income year that is attributable to the company ' s shareholders.

The result of this step is the shareholders ' share of the income tax liability of the company for the income year.


Step 2.

Divide the step 1 result by that total *income tax liability.

The result of this step is the shareholders ' ratio for the income year.


Step 3.

Multiply the amount of the payment or refund by the *shareholders ' ratio.

The result of this step is the part of the payment or refund that is attributable to the *shareholders ' share of the *income tax liability of the company for the income year.

219-50(3)  


For the purposes of this Part, the estimate mentioned in item 1 of the table in section 219-15 (the part of a payment estimated to be attributable to the *shareholders ' share of a company ' s *income tax liability for an income year) must be worked out on the basis of:


(a) subject to paragraph (b), the method statement in subsection (2); and


(b) the company ' s reasonable estimate of the amounts that, on the company ' s *assessment day for the income year, will be:


(i) its total income tax liability for the income year; and

(ii) the part of that total income tax liability that is attributable to its shareholders.

219-50(4)  


In working out the part of the *income tax liability of a *life insurance company that is attributable to the shareholders of the company for the purposes of this section, regard is to be had to the accounting records of the company.

 

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