INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2 - Franking surplus or deficit  

Subdivision B - General provisions on franking credits  

SECTION 160APVBA   LIFE ASSURANCE COMPANIES - CREDIT REDUCING SECTION 160APYBA DEBIT  

160APVBA(1A)   [No application if s 160AQCNCH applies]  

This section does not apply to a franking debit if section 160AQCNCH (transitional provision for late balancing life assurance company for 1999-2000 year of income) applies to the franking debit.

160APVBA(1)   [When franking credit arises]  

If, on a particular day, a franking debit of a life assurance company arises under section 160APYBA in relation to the refund or application of an amount paid by the company in respect of a year of income, there arises on that day whichever of the following is applicable:

(a) if the year of income is the 1992-93 year of income or an earlier year of income - a class A franking credit of the company worked out under subsection (2) of this section;

(b) if the year of income is the 1993-94 year of income or the 1994-95 year of income - a class B franking credit of the company worked out under subsection (2) of this section;

(c) if the year of income is the 1995-96 year of income or a later year of income - a class C franking credit of the company worked out under subsection (2) of this section.

160APVBA(2)   [Amount of franking credit]  

The amount of the franking credit is equal to the adjusted amount in relation to the amount calculated using the formula:

where:

`` Statutory factor '' means:

(a) in the case of a class A franking credit - 0.8; or

(b) in the case of a class B franking credit or a class C franking credit - 1.0;

`` Refunded/applied amount '' means the amount refunded or applied;

`` Company tax '' means the company tax assessed to the company for the year of income;

`` Standard component of company tax '' means so much of the company tax assessed to the company for the year of income as is attributable to the standard component.