Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 7/13)
Character Range: 3666806–3669760

distribution is an *exempting entity and the distribution gives rise to a *franking credit for the recipient; or
 (c) the distribution *flows indirectly to a former exempting entity and gives rise to an exempting credit for that entity; or
 (d) the distribution flows indirectly to an exempting entity and gives rise to a franking credit for that entity.

208‑235  Distributions to employees acquiring shares under eligible employee share schemes
  Division 207 also applies to a *distribution *franked with an exempting credit made by a *former exempting entity as if it were a *franked distribution if:
 (a) the distribution is made to an individual who, at the time the distribution is made, is an employee of:
 (i) the former exempting entity; or
 (ii) a *subsidiary of the former exempting entity; and
 (b) the employee acquired a beneficial interest in the *share on which the distribution is made:
 (i) under an *employee share scheme; and
 (ii) in circumstances specified as relevant in section 208‑215; and
 (c) the employee does not hold that beneficial interest as a trustee.

208‑240  Distributions to certain individuals
  Division 207 also applies to a *distribution *franked with an exempting credit made by a *former exempting entity as if it were a *franked distribution if:
 (a) a *corporate tax entity other than a former exempting entity became an *exempting entity; and
 (b) immediately before the entity became an exempting entity all the accountable membership interests and accountable partial interests were beneficially owned (whether directly or indirectly) by individuals who were Australian residents; and
 (c) the entity became an exempting entity because some or all of the individuals ceased to be Australian residents; and
 (d) the entity becomes a former exempting entity because all of the individuals are or have become Australian residents; and
 (e) an amount attributable to a distribution *franked with an exempting credit made by the entity is included in the assessable income of such an individual; and
 (f) all the accountable membership interests or accountable partial interests in the entity were, throughout the period beginning when the entity became an exempting entity and ending when the amount was received by the individual mentioned in paragraph (e), beneficially owned (directly or indirectly) by that individual; and
 (g) the individual is an eligible continuing substantial member in relation to the distribution.

Division 210—Venture capital franking

Table of Subdivisions
 Guide to Division 210
210‑A Franking a distribution with a venture capital credit
210‑B Participating PDFs
210‑C Distributions that are frankable with a venture capital credit
210‑D Amount of the venture capital credit on a distribution
210‑E Distribution statements
210‑F Rules affecting the allocation of venture capital credits
210‑G Venture capital sub‑account
210‑H Effect of receiving a distribution franked with