Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:10_7:p1
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 10 cl 7 (pt 1/6)
Character Range: 179497–182363

7  Subdivision 207‑B
Repeal the Subdivision, substitute:

Subdivision 207‑B—Franked distribution received through certain partnerships and trustees

Guide to Subdivision 207‑B

207‑25  What this Subdivision is about

      This Subdivision deals with an entity that receives a benefit of a franked distribution where:

                (a) the distribution is made to a partnership or the trustee of a trust; and
                (b) the benefit is received either directly or through other interposed partnerships or trusts.

      The distribution is regarded as flowing indirectly to the entity under this Subdivision.
      On the basis of a notional amount of the entity's share of the distribution, the entity may be entitled to have an amount included in its assessable income and/or a tax offset under this Subdivision.

Table of sections

Gross‑up and tax offset

207‑30 Applying this Subdivision
207‑35 Gross‑up—distribution made to, or flows indirectly through, a partnership or trustee
207‑45 Tax offset—distribution flows indirectly to an entity

Key concepts

207‑50 When a franked distribution flows indirectly to or through an entity
207‑55 Share of a franked distribution
207‑57 Share of the franking credit on a franked distribution

[This is the end of the Guide.]

Gross‑up and tax offset

207‑30  Applying this Subdivision

  This Subdivision applies subject to Subdivisions 207‑D, 207‑E and 207‑F.

Note 1: Subdivision 207‑D sets out the cases in which the gross‑up and tax offset rules in this Subdivision and Subdivision 207‑A will not apply because the franked distribution (or a share of it) would not have been taxed in any case.

Note 2: Subdivision 207‑E sets out the exceptions to the rules in Subdivision 207‑D.

Note 3: Subdivision 207‑F sets out the cases in which the gross‑up and tax offset rules in this Subdivision and Subdivision 207‑A will not apply because the imputation system has been manipulated in a way that is not permitted under the income tax law.

207‑35  Gross‑up—distribution made to, or flows indirectly through, a partnership or trustee

Additional amount of assessable income

 (1) If:
 (a) a *franked distribution is made in an income year to an entity that is a partnership or the trustee of a trust; and
 (b) the entity is not a *corporate tax entity when the distribution is made; and
 (c) if the entity is the trustee of a trust—the trust is not a *complying superannuation entity when the distribution is made;
the assessable income of the partnership or trust for that income year includes the amount of the *franking credit on the distribution.

 (2) The amount is in addition to any other amount included in that assessable income in relation to the distribution under any other provision of this Act.

Note: The amount will affect the income tax liability of a partner in the partnership, or a