Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:10_24:p3
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 10 cl 24 (pt 3/3)
Character Range: 98034–99628

company that was a member of the same wholly‑owned group; and
 (b) was an NZ resident or would have been one had section 220‑20 of the Income Tax Assessment Act 1997, and section 995‑1 of that Act so far as it relates to section 220‑20 of that Act, applied throughout the period.

Franking credits for the period remain franking credits

 (5) A franking credit arises in the Australian company's franking account immediately after the switch time.

Note: This franking credit will partly or fully offset the franking debit that arises under item 1 of the table in section 208‑145 of the Income Tax Assessment Act 1997 because the Australian company becomes a former exempting entity at the switch time.

Franking credits for the period do not become exempting credits

 (6) An exempting debit arises in the Australian company's exempting account immediately after the switch time.

Note: This exempting debit will partly or fully offset the exempting credit that arises under item 1 of the table in section 208‑115 of the Income Tax Assessment Act 1997 because the Australian company becomes a former exempting entity at the switch time.

Amount of franking credit and exempting debit

 (7) Work out the amount of the franking credit arising under subsection (5) and the exempting debit arising under subsection (6) using the table:

Amount of the franking credit and the exempting debit
Item                                                   If:                                                                                                           The amount of the credit and debit is: