Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:13_5:p1
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 13 cl 5 (pt 1/7)
Character Range: 172432–175183

5                                                                                            a *franking credit arises in the *franking account of an entity under item 3 or 4 of the table in section 205‑15 because a *distribution is made by an *exempting entity to the entity, or a distribution made by an exempting entity *flows indirectly to the entity  an amount equal to the amount of the franking credit  when the franking credit arises

Note 1: Item 3 of the table is designed to reverse out franking credits that arise in relation to a period during which the entity is an exempting entity. The entity will receive an exempting credit instead.
Note 2: Item 5 of the table is designed to reverse out franking credits that arise under the core rules because an entity receives a franked distribution from an exempting entity. Only a recipient who is itself an exempting entity is entitled to a franking credit in these circumstances.

208‑150  Residency requirement
  The tables in sections 208‑115, 208‑120, 208‑130 and 208‑145 are relevant for the purposes of subsection 205‑25(1).
Note 1: Subsection 205‑25(1) sets out the residency requirement for an income year in which, or in relation to which, an event specified in one of the tables occurs.
Note 2: Section 207‑75 sets out the residency requirement that must be satisfied by the entity receiving a distribution when the distribution is made.

208‑155  Eligible continuing substantial member
 (1) A *member of a *former exempting entity is an eligible continuing substantial member in relation to a *distribution made by the entity if the following provisions apply.
 (2) At both the time when the *distribution was made, and the time immediately before the entity ceased to be an *exempting entity, the *member was entitled to not less than 5% of:
 (a) where the entity is a *company:
 (i) if the voting shares (as defined in the Corporations Act 2001) in the relevant former exempting entity are not divided into classes—those voting shares; or
 (ii) if the voting shares (as so defined) in the relevant former exempting entity are divided into 2 or more classes—the shares in one of those classes; and
 (b) where the entity is a *corporate unit trust or *public trading trust—the units in the trust; and
 (c) where the entity is a *corporate limited partnership—the income of the partnership.
 (3) At both the time when the *distribution was made, and the time immediately before the entity ceased to be an *exempting entity, the *member was a person referred to in one or more of the following paragraphs:
 (a) a person who is not an *Australian resident;
 (b) a *life insurance company;
 (c) an exempting entity;
 (d) a *former exempting entity;
 (e) a trustee of a trust in which an