Taxation Laws Amendment Act (No. 2) 1999 (93 of 1999)

Schedule 5   Franking of dividends by exempting companies and former exempting companies

Income Tax Assessment Act 1936

49   Subsection 160AQCBA(17)

Repeal the subsection, substitute:

Meaning of greater benefit from franking credits

(17) The circumstances in which a shareholder would, in a year of income, derive a greater benefit from franking credits than another shareholder include, but are not limited to:

(a) any of the following circumstances existing in relation to the other shareholder and not in relation to the first shareholder:

(i) the shareholder is a non-resident;

(ii) the amount of tax (if any) that, apart from this Part, would be payable by the shareholder is less than the amount of the rebate of tax to which the shareholder would be entitled under section 160AQU or 160AQY;

(iii) the shareholder is a company that is unable to pay a dividend to its shareholders in the year of income because it has not made any profits or has not made sufficient profits to do so;

(iv) the shareholder is an exempting company or a company for which no franking credits arise; and

(b) any of the following circumstances existing in relation to the first shareholder and not in relation to the other shareholder:

(i) a franking credit arises under section 160APPA;

(ii) a franking credit or exempting credit arises under section 160AQCNF;

(iii) subsection 160AQTA(2) or (5) applies;

(iv) section 160AQTB applies.


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