Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_3:p6
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 6/11)
Character Range: 101429–104197

exempt assets) or subparagraph 320‑35(1)(f)(ii) of this Act (income bonds, funeral policies and scholarship plans);
the recipient is entitled to a *tax offset equal to the *franking credit on the distribution.

 (2) Where:
 (a) a *franked distribution *flows indirectly to an entity; and
 (b) the distribution is *exempt income of the entity under:
 (i) section 282B, 283 or 297B of the Income Tax Assessment Act 1936 (certain income derived by an eligible entity within the meaning of Part IX of that Act); or
 (ii) paragraph 320‑35(1)(b) of this Act (segregated exempt assets) or subparagraph 320‑35(1)(f)(ii) of this Act (income bonds, funeral policies and scholarship plans);
the entity is entitled to a *tax offset equal to its *share of the *franking credit on the distribution.

207‑125  Gross‑up and tax offset allowed because entity is an exempt institution that is entitled to a refund

 (1) Where an entity makes a *franked distribution to an *exempt institution that is eligible for a refund, the institution is entitled to a *tax offset equal to the *franking credit on the distribution.

 (2) Where:
 (a) a *franked distribution *flows indirectly to an *exempt institution that is eligible for a refund; and
 (b) the distribution does not flow indirectly to the institution as a partner in a partnership; and
 (c) the distribution does not flow indirectly to the institution through another exempt institution that is eligible for a refund;
the institution is entitled to a *tax offset equal to the amount of the tax offset to which the institution would have been entitled, using Subdivision 207‑B, if the exempt status of the institution were ignored.

207‑130  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 charitable institutions

 (2) An entity is an exempt institution that is eligible for a refund if it:
 (a) is covered by item 1.1, 1.5, 1.5A or 1.5B of the table in section 50‑5; and
 (b) is endorsed as exempt from income tax under Subdivision 50‑B; and
 (c) satisfies the *residency requirement.

Income tax exempt deductible gift recipients

 (3) An entity is an exempt institution that is eligible for a refund if it:
 (a) is endorsed under paragraph 30‑120(a); and
 (b) satisfies the *residency requirement.

Income tax exempt specified deductible gift recipients

 (4) An entity is an exempt institution that is eligible for a refund if:
 (a) the entity's name is specified in a table in a section in Subdivision 30‑B; and
 (b) it has an ABN; and
 (c) it satisfies the residency requirement.

Income tax exempt relief funds

 (5) An entity is an exempt institution that is eligible