Document ID: chunk:federal_register_of_legislation:C2004A00901:clause:3_160aqkae:p2
Version: federal_register_of_legislation:C2004A00901
Segment Type: clause
Provision Reference: sch 3 cl 160AQKAE (pt 2/3)
Character Range: 38706–41151

reduced by any part of it that has been previously applied under this section;
 (b) the amount of the company tax or increased company tax, reduced by any foreign tax credits allowable in respect of tax paid or payable by the company in respect of income derived in the eligible year of income.

Company may claim offset

 (5) The subsidiary company may, for the purposes of making a claim for an offset under this section in relation to a year of income, determine:
 (a) whether an offset is allowable to the subsidiary company; and
 (b) if the subsidiary company determines that an offset is so allowable—the amount of the offset.

 (6) A claim under subsection (5) must be made on or after 4 May 1999 in the return furnished by the company in respect of income of that year of income or after the furnishing of that return.

Further consequences if a determination is made

 (7) If the subsidiary company is entitled to an offset under a determination made under this section:
 (a) for the purposes of Division 2 of this Part, the subsidiary company is taken to have made a payment of company tax for the eligible year of income equal to the offset specified in the determination, and not to have satisfied the liability mentioned in paragraph (1)(a); and
 (b) any franking credit or debit that arises because of that payment is taken to arise on 7 June 2001 or the day on which the subsidiary company first becomes entitled to offset an amount mentioned in paragraph (1)(a) against the subsidiary company's company tax, whichever is later.

Consequences for the holding company under this section

 (8) If this section applies, a class C franking debit arises for the holding company on 7 June 2001 or the day on which the subsidiary company first becomes entitled to offset an amount mentioned in paragraph (1)(a) against the subsidiary company's company tax, whichever is later. The amount of the franking debit is worked out using the formula:

 (9) The section has effect as if it had come into operation on 4 May 1999. For that purpose:
 (a) any claim for an offset made under section 160AQKA after 4 May 1999 but before the commencement of this section is taken to be a claim made under this section; and
 (b) on the day on which any such claim under section 160AQKA was made, the Commissioner is taken to have made a determination under this section that the company making the claim is entitled to an offset of the amount claimed.