Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:29_177ea:p5
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 29 cl 177EA (pt 5/6)
Character Range: 449813–452492

whether, apart from the scheme, the corporate tax entity would have retained the franking credits or exempting credits or would have used the franking credits or exempting credits to pay a franked distribution to another entity referred to in paragraph (b);
 (d) whether, apart from the scheme, a franked distribution would have flowed indirectly to another entity referred to in paragraph (b);
 (e) if the scheme involves the issue of a non‑share equity interest to which section 215‑10 of the Income Tax Assessment Act 1997 applies—whether the corporate tax entity has issued, or is likely to issue, equity interests in the corporate tax entity:
 (i) that are similar, from a commercial point of view, to the non‑share equity interest; and
 (ii) distributions in respect of which are frankable;
 (f) whether any consideration paid or given by or on behalf of, or received by or on behalf of, the relevant taxpayer in connection with the scheme (for example, the amount of any interest on a loan) was calculated by reference to the imputation benefits to be received by the relevant taxpayer;
 (g) whether a deduction is allowable or a capital loss is incurred in connection with a distribution that is made or that flows indirectly under the scheme;
 (h) whether a distribution that is made or that flows indirectly under the scheme to the relevant taxpayer is equivalent to the receipt by the relevant taxpayer of interest or of an amount in the nature of, or similar to, interest;
 (i) the period for which the relevant taxpayer held membership interests, or had an interest in membership interests, in the corporate tax entity;
 (j) any of the matters referred to in subparagraphs 177D(b)(i) to (viii).

Meaning of greater benefit from franking credits

 (18) The following subsection lists some of the cases in which a taxpayer to whom a distribution flows indirectly receives a greater benefit from franking credits than an entity referred to in paragraph (17)(b). It is not an exhaustive list.

 (19) A taxpayer to whom a distribution flows indirectly receives a greater benefit from franking credits than an entity referred to in paragraph (17)(b) if any of the following circumstances exist in relation to that entity in the income year in which the distribution giving rise to the benefit is made, and not in relation to the taxpayer if:
 (a) the entity is not an Australian resident; or
 (b) the entity would not be entitled to any tax offset under Division 207 of the Income Tax Assessment Act 1997 because of the distribution; or
 (c) the amount of income tax that would be payable by the entity because of the distribution is less than the tax offset to which the