Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_3:p1
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 1/11)
Character Range: 88452–91396

3                                                                                                                                paragraph (2)(c) applies

Note: Where reference is made in the tables in subsection (1) and (2) to an amount attributable to a distribution, it is a reference to an amount attributable to the cash amount of the distribution.

Subdivision 207‑C—Residency requirements for the general rule

Guide to Subdivision 207‑C

207‑60  What this Subdivision is about

      Some recipients of a franked distribution must satisfy a residency requirement if their assessable income is to include the franking credit on the distribution, and they are to be entitled to a tax offset, under the general rule.

Table of sections

207‑65 Satisfying the residency requirement

Operative provisions

207‑70 Gross‑up and tax offset under section 207‑20
207‑75 Residency requirement

207‑65  Satisfying the residency requirement

 (1) This Subdivision sets out the residency requirements that must be satisfied by an individual or a corporate tax entity that receives a franked distribution, if the franking credit on the distribution is to be included in that entity's assessable income, or the entity is to be entitled to a tax offset, under the general rule.

 (2) It does not impose a residency requirement on other entities, because the significance of residency for those entities is dealt with elsewhere in this Act.

 (3) It does not impose a residency requirement where a distribution flows indirectly to an entity. This is also because the significance of residency is dealt with elsewhere, for the most part in Divisions 5 and 6 of Part III of the Income Tax Assessment Act 1936.

[This is the end of the Guide.]

Operative provisions

207‑70  Gross‑up and tax offset under section 207‑20

  If an entity makes a *franked distribution to an individual or a *corporate tax entity:
 (a) no amount is included in the receiving entity's assessable income under subsection 207‑20(1); and
 (b) the receiving entity is not entitled to a *tax offset under subsection 207‑20(2);
unless the receiving entity satisfies the *residency requirement at the time the distribution is made.

207‑75  Residency requirement

  An entity that receives a *franked distribution satisfies the residency requirement at the time the distribution is made if:
 (a) in the case of an individual—the individual is an *Australian resident at that time; and
 (b) in the case of a *company—the company is an *Australian resident at that time; and
 (c) in the case of a *corporate limited partnership—the corporate limited partnership is an Australian resident at that time; and
 (d) in the case of a *corporate unit trust—the corporate unit trust is a *resident unit trust for the income year in which that time occurs; and
 (e) in the case of a *public trading trust—the public trading trust is a resident unit trust for the income year in which that