Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 18/19)
Character Range: 3796703–3799310

and
 (ii) the company is a *former exempting entity.

Exempting debit if exempting surplus just before end time
 (2) An *exempting debit arises in the company's *exempting account at the end time if the account was in *surplus immediately before that time. The amount of the debit equals the *exempting surplus.

If exempting deficit just before end time
 (3) If the company's *exempting account was in *deficit immediately before the end time:
 (a) a *franking debit equal to that deficit arises in the company's *franking account immediately before the end time; and
 (b) an *exempting credit equal to that deficit arises in the company's exempting account at the end time.

Tax effect of distribution franked by NZ franking company with an exempting credit

220‑700  Tax effect of distribution franked by NZ franking company with an exempting credit
 (1) This section has effect if an *NZ franking company *franks with an exempting credit a *distribution the company makes when it is a *former exempting entity.
 (2) If, under Subdivision 208‑H, Division 207 applies in relation to the *distribution, it applies subject to the provisions of this Division that modify the effect of that Division.
Note 1: Subdivision 208‑H provides in some cases for the tax effect of a distribution franked with an exempting credit by applying Division 207 as if the distribution were a franked distribution.
Note 2: Sections 220‑400 and 220‑405 modify the effect of Division 207 so far as it relates to the tax effect of distributions by NZ franking companies that pay supplementary dividends in connection with the distributions.
 (3) Subdivision 208‑H has effect subject to this section.

Joint and several liability for NZ resident company's unmet franking liabilities

220‑800  Joint and several liability for NZ resident company's franking tax etc.
 (1) This section has effect if:
 (a) a company (the defaulter) became liable under another section to pay an amount described in subsection (2) because the company was an *NZ franking company; and
 (b) the amount was unpaid by the time (the defaulter's due time) it was due and payable by the defaulter; and
 (c) at any time during the period for the amount (see subsection (2)), the defaulter was a member of the same *wholly‑owned group as one or more other companies (each of which is a contributor).
 (2) For the purposes of subsection (1), the amount and period are shown in the table:

Amount and period
Item               For an amount of this kind:                                                                                               The period is: