Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p47
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 47/64)
Character Range: 3418704–3421612

202‑55 What is the maximum franking credit for a frankable distribution?

Operative provisions
202‑60 Amount of the franking credit on a distribution
202‑65 Where the franking credit stated in the distribution statement exceeds the maximum franking credit for the distribution

202‑55  What is the maximum franking credit for a frankable distribution?
  The maximum franking credit for a distribution is equivalent to the maximum amount of income tax that the entity making the distribution could have paid, at the entity's corporate tax rate for imputation purposes for the income year in which the distribution is made, on the profits underlying the distribution.

Operative provisions

202‑60  Amount of the franking credit on a distribution
 (1) The amount of the *franking credit on a *distribution is that stated in the *distribution statement for the distribution, unless that amount exceeds the *maximum franking credit for the distribution.
 (2) The maximum franking credit for a *distribution is worked out using the formula:
where:
applicable gross‑up rate means the *corporate tax gross‑up rate of the entity making the distribution for the income year in which the distribution is made.

202‑65  Where the franking credit stated in the distribution statement exceeds the maximum franking credit for the distribution
  If the amount of a *franking credit stated in a *distribution statement for a *distribution exceeds the *maximum franking credit for the distribution, the amount of the franking credit on the distribution is taken to be the amount of the maximum franking credit for the distribution, and not the amount stated in the distribution statement.

Subdivision 202‑E—Distribution statements

Guide to Subdivision 202‑E

202‑70  What this Subdivision is about
      An entity that makes a frankable distribution must give the recipient a statement setting out details of the distribution.

Table of sections

Operative provisions
202‑75 Obligation to give a distribution statement
202‑80 Distribution statement
202‑85 Changing the franking credit on a distribution by amending the distribution statement

Operative provisions

202‑75  Obligation to give a distribution statement
 (1) An entity that makes a *frankable distribution must give the recipient a *distribution statement.
 (2) The statement must be given on or before the day on which the *distribution is made, unless the entity is allowed to give the statement at a later time under subsection (3).
 (3) If the entity is a *private company for the income year in which the *distribution is made, the statement must be given:
 (a) before the end of 4 months after the end of the income year in which the distribution is made; or
 (b) before the time determined by the Commissioner under subsection (5);
whichever is later.
 (4) However, the entity is not allowed to give the statement at a later time under subsection (3) if