Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p59
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 59/64)
Character Range: 3449541–3452255

member is a *corporate tax entity at the time the distribution is made, but no *franking credit arises for the entity as a result of the distribution;
 (e) the other member is a *corporate tax entity at the time the distribution is made, but cannot use *franking credits received on the distribution to *frank distributions to its own members because:
 (i) it is not a *franking entity; or
 (ii) it is unable to make *frankable distributions;
 (f) the other member is an *exempting entity.
 (9) A *member of an entity *derives a greater benefit from franking credits than another member of the entity if any of the following circumstances exist in relation to the first member in the income year in which the *distribution giving rise to the benefit is made, and not in relation to the other member:
 (a) a *franking credit arises for the first member under item 5, 6 or 7 of the table in section 208‑130 (distributions by *exempting entities to exempting entities);
 (b) a franking credit or *exempting credit arises for the first member because the distribution is *franked with an exempting credit;
 (c) the first member is entitled to a *tax offset because:
 (i) the distribution is a *franked distribution made by an exempting entity; or
 (ii) the distribution is *franked with an exempting credit.
 (10) A *member of an entity *derives a greater benefit from franking credits than another member if the first member is entitled to a *tax offset under section 210‑170 as a result of the *distribution, and the other member is not.

204‑35  When does a franking debit arise if the Commissioner makes a determination under paragraph 204‑30(3)(a)
 (1) If the Commissioner makes a determination giving rise to a *franking debit in the *franking account of an entity under paragraph 204‑30(3)(a), the debit arises in the franking account of the entity on the day on which the notice of determination is given to the entity in accordance with section 204‑50.
 (2) If the Commissioner makes a determination giving rise to an *exempting debit in the *exempting account of an entity under paragraph 204‑30(3)(b), the debit arises in the exempting account of the entity on the day on which the notice of determination is given to the entity in accordance with section 204‑50.

204‑40  Amount of the franking debit
 (1) The amount of the *franking debit arising because of a determination by the Commissioner under paragraph 204‑30(3)(a) must not exceed:
 (a) if the specified *distribution has been *franked—the difference between the amount of the *franking credit on the distribution and an amount worked out by multiplying the amount of the distribution by the highest *franking percentage at which a distribution to