Document ID: chunk:federal_register_of_legislation:C2025C00014:section:177ea:p6
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 177EA (pt 6/6)
Character Range: 1638155–1638860

corporate tax entity at the time the distribution is made, but no franking credit arises for the entity as a result of the distribution; or
 (e) the entity is a corporate tax entity at the time the distribution is made, but cannot use franking credits received on the distribution to frank distributions to its own members because:
 (i) it is not a franking entity; or
 (ii) it is unable to make frankable distributions.
Note: Where the distribution is made directly to the taxpayer, see subsections 204‑30(7), (8), (9) and (10) of the Income Tax Assessment Act 1997 for a list of circumstances in which the taxpayer will be treated as deriving a greater benefit from franking credits than another entity.