Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 7/34)
Character Range: 3541834–3544642

match trust share amounts
207‑128 Reinvestment choice
207‑130 Controller's liability
207‑132 Treatment of benefits provided by an entity to a controller
207‑134 Entity's present entitlement disregarded in certain circumstances
207‑136 Review of certain decisions

Operative provisions

207‑110  Effect of non‑assessable income on gross up and tax offset
 (1) This section applies to an entity to whom a *franked distribution is made, or *flows indirectly, in any of the following circumstances:
 (a) the entity is an *exempt institution that is eligible for a refund and the distribution does not flow indirectly to the entity as a partner in a partnership under subsection 207‑50(2);
 (b) the distribution is, or the entity's *share of the distribution would have been, this kind of income in its hands:
 (i) *exempt income under section 295‑385 (about income from assets set aside to meet current pension liabilities), section 295‑390 (about income from other assets used to meet current pension liabilities) or section 295‑400 (about income of a PST attributable to current pension liabilities); or
 (ii) *non‑assessable non‑exempt income under paragraph 320‑37(1)(a) (segregated exempt assets of a life insurance company) or paragraph 320‑37(1)(d) (certain amounts received by a friendly society) of this Act.
 (2) The following have effect in relation to the entity:
 (a) section 207‑90 or 207‑95 (as appropriate) does not apply to the entity;
 (b) if the entity would, apart from section 207‑90 or 207‑95, be entitled to a *tax offset under section 207‑20 or 207‑45 in relation to the distribution—the entity is entitled to that tax offset;
 (c) if the entity would not be entitled to such a tax offset, the entity is entitled to a tax offset under this section that is equal to:
 (i) if the distribution is made to the entity—the *franking credit on the distribution; or
 (ii) if the distribution *flows indirectly to the entity—the entity's *share of the franking credit on the distribution;
 (d) if the distribution flows indirectly through the entity to another entity—subsection 207‑35(3) and section 207‑45 do not apply to that other entity.
Note: Paragraph (2)(c) only applies to an exempt institution that is eligible for a refund and that is not entitled to a tax offset under section 207‑20 or 207‑45. An entity covered by paragraph (1)(b) will, in all cases, be entitled to a tax offset under section 207‑20 or 207‑45.

Exempt institutions

207‑115  Which exempt institutions are eligible for a refund?
 (1) This section sets out the only circumstances in which an entity is an exempt institution that is eligible for a refund.

Income tax exempt charities
 (2) An entity is an exempt institution that is eligible for a refund if it:
 (a) is covered by item 1.1 of the table in section 50‑5;