INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2 - Franking surplus or deficit  

Subdivision CA - Franking debits of life assurance companies where relevant year of income is no later than 1999-2000  

SECTION 160AQCL   LIFE ASSURANCE COMPANIES - DEBIT REDUCING SECTION 160APQB CREDIT  

160AQCL(1A)   [No application if s 160AQCNCF applies]  

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

160AQCL(1)   [When franking debit arises]  

If, on a particular day, a franking credit of a life assurance company arises under section 160APQB in relation to a payment of an excess amount in respect of a foreign tax credit allowable in relation to 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 debit 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 debit 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 debit of the company worked out under subsection (2) of this section.

160AQCL(2)   [Amount of franking debit]  

The amount of the franking debit 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 debit - 0.8; or

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

`` Excess amount '' means the amount of the excess;

`` Standard component of excess amount '' means so much of the excess amount as is attributable to the standard component in relation to the year of income.