Document ID: chunk:federal_register_of_legislation:C2004A00901:clause:3_160aqkaa:p1
Version: federal_register_of_legislation:C2004A00901
Segment Type: clause
Provision Reference: sch 3 cl 160AQKAA (pt 1/2)
Character Range: 18089–20729

160AQKAA  Entitlement for life assurance companies to offset on or after 4 May 1999

Determination by Commissioner—original assessment

 (1) Subject to this Subdivision, where:
 (a) a life assurance company has become liable to pay one or more of the following in relation to a franking year that ends on or after 4 May 1999:
 (i) class A franking deficit tax for the franking year;
 (ii) class C franking deficit tax for the franking year;
 (iii) class A deficit deferral tax in relation to the refund of one or more instalments paid during the franking year;
 (iv) class C deficit deferral tax in relation to the refund of one or more instalments paid during the franking year; and
 (b) after the end of the franking year, the Commissioner serves on the company a notice of an original company tax assessment for an eligible year of income in which the company was sufficiently resident;
the Commissioner must determine that the company is entitled to an offset in relation to that company tax equal to the amount specified in the determination.

Determination to specify lesser of 2 amounts

 (2) The amount specified in the determination must be the lesser of the following amounts:
 (a) the sum of the class A franking deficit tax, the class A deficit deferral tax, the class C franking deficit tax and the class C deficit deferral tax, reduced by any part of it that has been previously applied under this Subdivision;
 (b) the amount, worked out under section 160AQKAB, of the company's liability to pay company tax for the eligible year of income that would normally give rise to franking credits, 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.

Determination by Commissioner—amended assessment

 (3) Subject to this Subdivision, where:
 (a) a life assurance company has become liable to pay one or more of the following in relation to a franking year that ends on or after 4 May 1999:
 (i) class A franking deficit tax for the franking year;
 (ii) class C franking deficit tax for the franking year;
 (iii) class A deficit deferral tax in relation to the refund of one or more instalments paid during the franking year;
 (iv) class C deficit deferral tax in relation to the refund of one or more instalments paid during the franking year; and
 (b) after the end of the franking year, the Commissioner serves on the company a notice of an amended company tax assessment for an eligible year of income in which the company was sufficiently resident;
then:
 (c) any determination already made by the Commissioner under this