INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
(a) during a franking year (the ``first franking year'' ) a company pays one or more instalments under section 221AZK for the 1994-95 year of income; and
(b) at a particular time during the next franking year (the ``second franking year'' ) the company receives a refund of the whole or a part of the instalment, or one or more of the instalments, under section 221AZL or 221AZQ ; and
(c) assuming that the refund, together with any previous refund of one or more instalments for the year of income, had been received by the company on the last day of the first franking year, the company would have had a class B franking deficit, or an increased class B franking deficit, at the end of the first franking year;
a class B deficit deferral amount (defined in subsection (2)) arises in relation to the company and the refund.
The ``class B deficit deferral amount'' is the amount of the class B franking deficit, or the amount of the increase in the class B franking deficit, referred to in paragraph (1)(c).160AQJB(3) Amount of class B deficit deferral tax.
If a class B deficit deferral amount arises in relation to a company and a refund, the company is liable to pay class B deficit deferral tax in relation to the refund. The amount of the tax is the gross class B deficit deferral amount (see subsection (4)) reduced by any class B deficit deferral tax already payable by the company in relation to refunds received in the second franking year.160AQJB(4) Gross class B deficit deferral amount.
The ``gross class B deficit deferral amount'' is worked out using the following formula:
160AQJB(5) Additional amounts taken to be part of instalment.
If an amount is paid under subsection 221AZR(1) in the same year as the instalment mentioned in that subsection, then, for the purposes of this section, the amount is to be treated as being part of the instalment.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.