Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 6/34)
Character Range: 3539303–3542153

Y. X is a foreign resident individual whose share of partnership's net income for the income year is $50 (share of distribution of $35 and share of franking credit of $15). That share of distribution is not assessable income and not exempt income under section 128D of the Income Tax Assessment Act 1936.
 X's assessable income of $15 (share of franking credit) is reduced to nil because of the deduction of $15 under subsection (2). Because of subsection (1), X is not entitled to a tax offset under section 207‑45.

Part of share of distribution not assessable
 (5) If:
 (a) a *franked distribution *flows indirectly to an entity in an income year; and
 (b) a part of the entity's *share of the distribution (the relevant part) would, in its hands, be *exempt income or *non‑assessable non‑exempt income(whether or not it had actually received that part);
then, subsection (2), (3) or (4) (as appropriate) applies to the entity on the basis that the amount of its *share of the *franking credit on the distribution is worked out as follows:
 (6) In addition, the following apply to an entity covered by subsection (5):
 (a) if the distribution would otherwise *flow indirectly through the entity—the entity's *share of the distribution for the purposes of this Act (other than subsection (2), (3) or (4)) is to be reduced by the relevant part mentioned in subsection (5);
 (b) if the entity would otherwise be entitled to a *tax offset under this Division because of the distribution—the amount of the tax offset is to be worked out as follows:

Subdivision 207‑E—Exceptions to the rules in Subdivision 207‑D

Guide to Subdivision 207‑E

207‑105  What this Subdivision is about
      Subdivision 207‑D does not apply to certain exempt institutions, trusts and life insurance companies as set out in this Subdivision. Such an entity may be entitled to a tax offset under this Subdivision in relation to a franked distribution.

Table of sections

Operative provisions
207‑110 Effect of non‑assessable income on gross up and tax offset

Exempt institutions
207‑115 Which exempt institutions are eligible for a refund?
207‑117 Residency requirement
207‑119 Entity not treated as exempt institution eligible for refund in certain circumstances
207‑120 Entity may be ineligible because of a distribution event
207‑122 Entity may be ineligible if distribution is in the form of property other than money
207‑124 Entity may be ineligible if other money or property also acquired
207‑126 Entity may be ineligible if distributions do not match trust share amounts
207‑128 Reinvestment choice
207‑130 Controller's liability
207‑132 Treatment of benefits provided by an entity to a controller
207‑134 Entity's present entitlement disregarded in certain circumstances
207‑136 Review of certain decisions

Operative provisions

207‑110  Effect of non‑assessable