Document ID: chunk:federal_register_of_legislation:C2010C00691:body:0:p47
Version: federal_register_of_legislation:C2010C00691
Segment Type: other
Provision Reference: 
Character Range: 114333–116915

amount or
partnership amount, as the case may be;
then:
  (c) in the case of a class A franking credit-Part IIIAA of the Principal Act
applies as if the class A franked amount of the dividend to which the trust
amount or partnership amount is attributable were a franked amount; and
  (d) in the case of a class B franking credit-Part IIIAA of the amended Act
applies as if that class B franking credit arises at the beginning of the
company's 1994-95 franking year instead of at the actual credit time.
  (3) If:
  (a) apart from this subsection, Part IIIAA of the amended Act applies,
because of this section, as if one or more class B franking credits arose at
the beginning of the 1994-95 franking year of a company; and
  (b) the company has, or would, apart from this subsection, have a franking
deficit at the end of the 1993-94 franking year of the company;
the following provisions have effect:
  (c) if the sum of those class B franking credits does not exceed 130% of the
franking deficit-each of those class B franking credits is to be:
    (i) reduced by 23%; and
    (ii) treated, for the purposes of Part IIIAA of the Principal Act,
as if it were a franking credit arising on the last day of the 1993-94
franking year of the company; and
    (iii) taken, for the purposes of Part IIIAA of the amended Act, not
to be a class B franking credit arising at the beginning of the 1994-95
franking year of the company;
  (d) if the sum of those class B franking credits exceeds 130% of the class B
franking deficit:
    (i) so much of each of those class B franking credits as is
calculated using the formula:
       Franking credit   X   130% franking deficit
                             Total franking credits
where:
  "Franking credit" means the amount of the class B franking credit;
  "130% franking deficit" is the number of dollars in 130% of the franking
deficit;
  "Total franking credits" means the number of dollars in the sum of those
class B franking credits;
(which amount so calculated is in this paragraph called the "proportional
franking credit") is to be:
      (A) reduced by 23%; and
      (B) treated, for the purposes of Part IIIAA of the Principal Act,
as if it were a franking credit arising on the last day of the 1993-94
franking year of the company; and
      (C) taken, for the purposes of Part IIIAA of the amended Act, not
to be a class B franking credit arising at the beginning of the 1994-95
franking year of the company; and
    (ii) so much of each of those class B franking credits as remains
after subtracting the proportional franking