INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 2 - Franking surplus or deficit  

Subdivision CC - Transitional provisions (life assurance companies)  

SECTION 160AQCNCF   LATE BALANCING LIFE ASSURANCE COMPANY (1999-2000 YEAR OF INCOME)  

160AQCNCF(1)   When franking credits and debits arise under this section.  

Franking debits and credits of a life assurance company arise under this section in relation to the 1999-2000 year of income if:


(a) the company's 1999-2000 year of income ends on or after 1 July 2000; and


(b) some of the company tax payable by the company in respect of that year of income is attributable to taxable income derived on or after 1 July 2000; and


(c) one of the items in the following table is satisfied:


Circumstances in which this section applies
General description This item is satisfied if ...
1 Assessment after section 160APM credit (a) a class C franking credit of the company arose under section 160APM because of an amount the company paid under section 221AZK in respect of the year of income; and
(b) the company's company tax in respect of the year of income is assessed on a day (the adjustment day ) that occurs on or after the day on which the class C franking credit arose.
.
2 Section 160APM credit after assessment (a) on a particular day (the adjustment day ), a class C franking credit of the company arises under section 160APM because an amount the company pays under section 221AZK in respect of the year of income; and
(b) the company's company tax in respect of the year of income has been assessed before the adjustment day.
.
3 Assessment after section 160APMAA credit (a) a class C franking credit of the company arose under section 160APMAA because of an amount the company paid under subsection 221AZR(1) in respect of the year of income; and
(b) the company's company tax in respect of the year of income is assessed on a day (the adjustment day ) that occurs on or after the day on which the class C franking credit arose.
.
4 Section 160APMAA credit after assessment (a) on a particular day (the adjustment day ), a class C franking credit of the company arises under section 160APMAA because of an amount the company pays under subsection 221AZR(1) in respect of the year of income; and
(b) the company's company tax in respect of the year of income has been assessed before the adjustment day.
.
5 Section 160APMD credit after assessment (a) on a particular day (the adjustment day ), a class C franking credit of the company arises under section 160APMD because of an amount of company tax the company pays in respect of a year of income; and
(b) the company's company tax in respect of the year of income has been assessed before the adjustment day.
.
6 Substituted franking credit for payment of excess foreign tax credit on a particular day (the adjustment day ), a class C franking credit of the company arises under section 160APQB in relation to the year of income because of an amount paid by the company.

160AQCNCF(2)   Pre 1 July 2000 and post 1 July 2000 proportions.  

For the purposes of this section:


(a) the pre 1 July 2000 proportion is:


Company tax for the 1999 - 2000 year of income that is
  referable to taxable income derived before 1 July 2000  
Company tax for the 1999 - 2000 year of income


(b) the post 1 July 2000 proportion is:


Company tax for the 1999 - 2000 year of income that is
  referable to taxable income derived on or after 1 July 2000  
Company tax for the 1999 - 2000 year of income

160AQCNCF(3)   Treatment of amount derived before 1 July 2000.  

On the adjustment day:


(a) a class A franking credit of the company arises in relation to the pre 1 July 2000 proportion of the amount paid; and


(b) a class C franking debit of the company arises in relation to the pre 1 July 2000 proportion of the amount paid.

160AQCNCF(4)   [Class A credit calculation]  

The amount of the class A franking credit referred to in paragraph (3)(a) is equal to the adjusted amount in relation to the amount calculated using the formula:

Graphic

where:

company tax referable to pre 1 July 2000 income
is the company tax assessed to the company in respect of the year of income to the extent to which it is referable to taxable income derived before 1 July 2000.

general component of company tax referable to pre 1 July 2000 income
is so much of the company tax assessed to the company in respect of the year of income as is attributable to the general component and referable to taxable income derived before 1 July 2000.

160AQCNCF(5)   [Class C debit calculation]  

The amount of the class C franking debit referred to in paragraph (3)(b) is equal to the adjusted amount in relation to the amount calculated using the formula:

Graphic

where:

company tax referable to pre 1 July 2000 income
is the company tax assessed to the company in respect of the year of income to the extent to which it is referable to taxable income derived before 1 July 2000.

standard component of company tax referable to pre 1 July 2000 income
is so much of the company tax assessed to the company in respect of the year of income as is attributable to the standard component and referable to taxable income derived before 1 July 2000.

160AQCNCF(6)   Treatment of amount derived on or after 1 July 2000.  

On the adjustment day, there also arises:


(a) a class C franking debit of the company equal to the adjusted amount in relation to the post 1 July 2000 proportion of the amount paid; and


(b) a class C franking credit of the company equal to the adjusted amount in relation to the final franking component of the post 1 July 2000 proportion of the amount paid.

160AQCNCF(7)   [Final franking component]  

The final franking component of the post 1 July 2000 proportion of the amount paid is so much of that proportion of the amount paid as is attributable to shareholders' funds income for that year of income that is derived on or after 1 July 2000.


 

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