Document ID: chunk:federal_register_of_legislation:C2025C00029:section:9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 9
Character Range: 3748210–3751340

9                                         the company *pays diverted profits tax; and                                                                                                                                                                       that part of the payment that is attributable to:                                                                                                 on the day on which the payment is made
                                          the company satisfies the *residency requirement for the income year for which the tax is paid; and                                                                                                               (a) the *shareholders' share of the *income tax liability of the company for that income year; and
                                          the company is a *franking entity for the whole or part of that income year                                                                                                                                       (b) the period during which the company was a franking entity;
                                                                                                                                                                                                                                                            multiplied by the proportion worked out under subsection (4)

Note 1: On the assessment day, a franking credit that arose under item 1 of the table:
• is reversed by a franking debit that arises under item 1 of the table in section 219‑30; and
• is replaced with a franking credit that arises under item 2 of the table in this section.
Note 2: Section 219‑50 tells you how to work out the part of an amount that is attributable to the shareholders' share of the income tax liability of the company for the income year.
Note 3: To find out whether a tax offset under Division 207 is subject to the refundable tax offset rules: see section 67‑25.
 (3) A *franking credit covered by item 6 of the table arises at the end of the income year:
 (a) that is an income year of the last partnership or trust interposed between:
 (i) the *life insurance company; and
 (ii) the *corporate tax entity that made the distribution; and
 (b) during which the *franked distribution *flows indirectly to the life insurance company.
 (4) The proportion is the standard corporate tax rate (within the meaning of Part IVA of the Income Tax Assessment Act 1936) divided by 40%.

219‑30  Franking debits
 (1) The table in section 205‑30 (except items 2 and 2A) applies to a *life insurance company in the same way as it applies to any other company.
 (2) The following table sets out when a *franking debit arises under this section in the *franking account of a *life insurance company.

Franking debits in the franking account
Item                                     If:                                                                                                                    A debit of:                                                                                         Arises: