Document ID: chunk:federal_register_of_legislation:C2010C00499:clause:7_9:p1
Version: federal_register_of_legislation:C2010C00499
Segment Type: clause
Provision Reference: sch 7 cl 9 (pt 1/2)
Character Range: 55117–57779

9  Before Division 220
Insert:

Division 219—Imputation for life insurance companies

Table of sections

219‑40 Reversing and replacing (on tax paid basis) certain franking credits that arose before 1 July 2002
219‑45 Reversing (on tax paid basis) certain franking debits that arose before 1 July 2002

219‑40  Reversing and replacing (on tax paid basis) certain franking credits that arose before 1 July 2002

 (1) This section applies if:
 (a) a franking credit arose before 1 July 2002 in the franking account of a life insurance company under section 160APVJ of the Income Tax Assessment Act 1936 in relation to a PAYG instalment in respect of an income year; and
 (b) the company's assessment day (the assessment day) for that income year occurs on or after 1 July 2002; and
 (c) the company has a franking account (the new franking account) under section 205‑10 of the Income Tax Assessment Act 1997.

 (2) A franking debit of the amount worked out in accordance with the following formula is taken to have arisen in the new franking account on the assessment day:
where:

amount of the 1936 Act credit means the amount of the franking credit mentioned in paragraph (1)(a).

 (3) On the assessment day, a franking credit of the amount mentioned in item 2 of the table in section 219‑15 of the Income Tax Assessment Act 1997 arises in the new franking account in relation to a payment of the PAYG instalment mentioned in paragraph (1)(a) of this section that was made before 1 July 2002.

Note: On the assessment day, the franking credit mentioned in paragraph (1)(a) is therefore:
  *   reversed by the franking debit arising under subsection (2); and
  *   replaced with a franking credit arising under subsection (3).

219‑45  Reversing (on tax paid basis) certain franking debits that arose before 1 July 2002

 (1) This section applies if:
 (a) a franking debit arose before 1 July 2002 in the franking account of a life insurance company under section 160AQCNCE of the Income Tax Assessment Act 1936 in relation to a PAYG instalment variation credit in respect of an income year; and
 (b) the company's assessment day (the assessment day) for that income year occurs on or after 1 July 2002; and
 (c) the company has a franking account (the new franking account) under section 205‑10 of the Income Tax Assessment Act 1997.

 (2) A franking credit of the amount worked out in accordance with the following formula is taken to have arisen in the new franking account on 1 July 2002:
where:

amount of the 1936 Act debit means the amount of the franking debit mentioned in paragraph (1)(a).

Note: As the effects of sections 160AQCNCE and 160APVN of