Income Tax Assessment Act 1997
The Commissioner may cancel a company's *NZ franking choice by written notice given to the company, but only if the Commissioner is satisfied that either:
(a) the company was liable to pay *franking deficit tax or *over-franking tax (whether or not because of section 220-800 (about joint and several liability for the tax)) and the company did not pay the tax by the day on which it was due and payable; or
(b) the company has not complied with subsection 214-15(2) or 214-20(2) (about giving the Commissioner a *franking return). 220-50(2)
To avoid doubt, the cancellation takes effect when the notice is given to the company. Review of cancellation 220-50(3)
If the company is dissatisfied with the cancellation of the choice, it may object against the cancellation in the manner set out in Part IVC of the Taxation Administration Act 1953 .
That Part provides for review of the cancellation objected against.Effect of cancelling a choice on making another choice in future 220-50(4)
If the company makes another *NZ franking choice, it does not come into force unless the Commissioner consents in writing to the choice coming into force. 220-50(5)
In consenting, the Commissioner may specify when the choice is to come into force. The consent has effect according to its terms, despite section 220-40 . 220-50(6)
The Commissioner must give a copy of the consent to the company.
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