Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_1:p15
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 15/20)
Character Range: 37679–40552

this Subdivision is about

      This Subdivision prevents the streaming of imputation benefits to one member of a corporate tax entity in preference to another by either imposing a franking debit or denying an imputation benefit where there is streaming.

Table of sections

Operative provisions

204‑30 Streaming distributions
204‑35 When does a franking debit arise if the Commissioner makes a determination under paragraph 204‑30(3)(a)
204‑40 Amount of the franking debit
204‑45 Effect of a determination under paragraph 204‑30(3)(b)
204‑50 Assessment and notice of determination
204‑55 Right to review where a determination made

[This is the end of the Guide.]

Operative provisions

204‑30  Streaming distributions

Commissioner's power to make a determination when distributions or distributions and other benefits are streamed

 (1) This section empowers the Commissioner to make determinations if an entity streams one or more *distributions (or one or more distributions and the giving of other benefits), whether in a single *franking period or in a number of franking periods, in such a way that:
 (a) an *imputation benefit is, or apart from this section would be, received by a *member of the entity as a result of the distribution or distributions; and
 (b) the member would derive a *greater benefit from franking credits than another member of the entity; and
 (c) the other member of the entity will receive lesser imputation benefits, or will not receive any imputation benefits, whether or not the other member receives other benefits.
The member that derives the greater benefit from franking credits is the favoured member. The member that receives the lesser imputation benefits is the disadvantaged member.

Examples of other benefits

 (2) These are examples of the giving of other benefits:
 (a) issuing bonus *shares;
 (b) returning paid‑up share capital;
 (c) forgiving a debt;
 (d) the entity or another entity making a payment of any kind, or giving any property, to a *member or to another person on a member's behalf.

Nature of the determination that the Commissioner may make

 (3) The Commissioner may make one or more of these determinations:
 (a) that a specified *franking debit arises in the *franking account of the entity, for a specified *distribution or other benefit to a disadvantaged member;
 (b) that no *imputation benefit is to arise in respect of a distribution that is made to a favoured member and specified in the determination.
A determination must be in writing.

 (4) The Commissioner may specify the *franking debit under paragraph (3)(a) by specifying the *franking percentage to be used in working out the amount of the debit.

 (5) The Commissioner may specify the *distribution under paragraph (3)(a) or (b) by specifying:
 (a) the date on which the distribution was made, or the period during which the