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 160AQCNCH   LATE BALANCING LIFE ASSURANCE COMPANY (REFUNDS AND AMENDED ASSESSMENTS FOR 1999-2000 YEAR OF INCOME)  

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

Franking debits and credits of a life assurance company arise under this section 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 referable 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
Item General description This item is satisfied if …
1 Assessment after refund (a) a class C franking debit of the company arose under section 160APY or 160APYA in relation to the refund of a company tax instalment 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 debit arose.
.
2 Refund after assessment (a) on a particular day (the adjustment day ) a class C franking debit of the company arises under section 160APY or 160APYA in relation to the refund of a company tax instalment 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 Amended assessment on a particular day (the adjustment day ), a class C franking debit of the company arises under section 160APZ in relation to the amount of a reduction in the company's company tax.

160AQCNCH(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 2000 - 01 year of income that is
  referable to taxable income derived before 1 July 2000  
Company tax for 2000 - 01 year of income


(b) the post 1 July 2000 proportion is:


Company tax for 2000 - 01 year of income that is
  referable to taxable income derived on or after 1 July 2000  
Company tax for 2000 - 01 year of income

160AQCNCH(3)   Franking debit in respect of refund of tax on income derived before 1 July 2000.  

On the adjustment day:


(a) a class A franking debit of the company arises in relation to the pre 1 July 2000 proportion of the amount of the refund or reduction; and


(b) a class C franking credit of the company arises in relation to the pre 1 July 2000 proportion of the amount of the refund or reduction.

160AQCNCH(4)   [Formula]  

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


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 fund 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 fund component and referable to taxable income derived before 1 July 2000.

160AQCNCH(5)   [Calculation]  

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


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.

160AQCNCH(6)   Franking debits for refund of tax on income derived on or after 1 July 2000.  

On the adjustment day, there also arises:


(a) a class C franking credit of the company equal to the adjusted amount in relation to the post 1 July 2000 proportion of the amount of the refund or reduction; and


(b) a class C franking debit of the company equal to the adjusted amount in relation to the franking component of the post 1 July 2000 proportion of the amount of the refund or reduction.

160AQCNCH(7)   [``franking component'']  

The franking component of the post 1 July 2000 proportion of the amount of the refund or reduction is so much of that proportion of that amount 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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