Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p64
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 64/64)
Character Range: 3462528–3464084

franking entity at certain times and satisfy certain residency requirements before a franking credit or debit arises in its account.
 (5) Franking deficit tax is payable if the franking account of an entity is in deficit at the end of the entity's income year, or when the entity ceases to be a franking entity.
 (6) A tax offset is available to an entity that has incurred a liability to pay franking deficit tax.

Operative provisions

205‑10  Each entity that is or has been a corporate tax entity has a franking account
  There is a franking account for each entity that is, or has at any time been, a *corporate tax entity.
Note: The balance in the franking account on 1 July 2002 will either be nil or, if the entity had a franking surplus or deficit immediately before 1 July 2002 under the imputation scheme existing at that time, an amount calculated under the Income Tax (Transitional Provisions) Act 1997.

205‑15  Franking credits
 (1) The following table sets out when a credit arises in the *franking account of an entity and the amount of the credit. The credit is called a franking credit.

Credits in the franking account
Item                             If:                                                                                                                                                                                                             A credit of:                                                                                                                                                             Arises: