Income Tax Assessment Act 1997



Division 220 - Imputation for NZ resident companies and related companies  

Subdivision 220-B - NZ company treated as Australian resident for imputation system if company chooses  

SECTION 220-50   Cancelling an NZ franking choice  

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).

To avoid doubt, the cancellation takes effect when the notice is given to the company. Review of cancellation

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

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.

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 .

The Commissioner must give a copy of the consent to the company.


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