Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 16/19)
Character Range: 3791729–3794518

of the franked distribution had been a reference to the entity's share of the supplementary dividend.

Share of supplementary dividend
 (7) The entity's share of the supplementary dividend is worked out as follows:
 (8) Nothing in this section has the effect of including in the entity's assessable income its share of the supplementary dividend.

Relationship with Subdivisions 207‑B, 207‑D, 207‑E and 207‑F
 (9) Subdivisions 207‑B, 207‑D, 207‑E and 207‑F have effect subject to this section.

220‑410  Franking credit reduced if tax offset reduced
 (1) If, under section 220‑400 or 220‑405, a *corporate tax entity's *tax offset (the reduced tax offset) for the *franked distribution described in that section is less than it would be apart from that section, the *franking credit arising in that entity's *franking account because of the *distribution is equal to the reduced tax offset.
 (2) The following provisions have effect subject to this section:
 (a) items 3 and 4 of the table in section 205‑15;
 (b) items 5 and 6 of the table in section 219‑15.
Note: Each of those items gives rise to a franking credit for a franked distribution if the recipient is entitled under Division 207 to a tax offset for the distribution. Those items provide that the amount of the credit equals the amount of that offset.

Rules about exempting entities

220‑500  Publicly listed post‑choice NZ franking company and its 100% subsidiaries are not exempting entities
 (1) A company is not an *exempting entity at a particular time if:
 (a) it is a *post‑choice NZ franking company at the time; and
 (b) the company is a *listed public company at the time.
 (2) A company (the non‑exempting company) is not an *exempting entity at a particular time if at the time:
 (a) the non‑exempting company is a *100% subsidiary of a company (the listed company) that is not an exempting entity because of subsection (1); and
 (b) the non‑exempting company is an Australian resident or a *post‑choice NZ franking company; and
 (c) if:
 (i) there are one or more companies interposed between the non‑exempting company and the listed company; and
 (ii) one or more of the interposed companies are *NZ residents;
  all of the interposed companies that are NZ residents are post‑choice NZ franking companies.
 (3) This section has effect despite section 208‑20 (about an entity being an *exempting entity).

220‑505  Post‑choice NZ franking company is not automatically prescribed person
 (1) A *post‑choice NZ franking company is not a prescribed person under section 208‑40 for the purposes of working out whether another *corporate tax entity is an *exempting entity at a particular time because it is effectively owned by prescribed persons within the meaning of section 208‑25.
 (2) However, this section does