Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_1:p12
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 12/20)
Character Range: 29922–32901

of the entity because a distribution *franked at a *franking percentage that differs from the *benchmark franking percentage for the *franking period is made to one of them; and
 (f) any other matters that the Commissioner considers relevant.

When may the powers be exercised?

 (4) The Commissioner may make a determination under subsection (1) either before or after the *frankable distribution is made.

Consequence of the Commissioner exercising the power under this section

 (5) An allocation of a *franking credit at a percentage specified by the Commissioner in a determination under subsection (1) is taken to comply with the *benchmark rule.

Applying to the Commissioner

 (6) The entity must:
 (a) make its application under this section in writing; and
 (b) include in the application all information relevant to the matters to which the Commissioner must have regard under subsection (3).

Review

 (7) If the entity or a *member of the entity is dissatisfied with the determination under subsection (1), the entity or member may object to it in the manner set out in Part IVC of the Taxation Administration Act 1953.

Division 204—Anti‑streaming rules

Table of Subdivisions

204‑A Objects and application
204‑B Linked distributions
204‑C Substituting tax‑exempt bonus share for franked distributions
204‑D Streaming distributions
204‑E Disclosure requirements

Subdivision 204‑A—Objects and application

Table of sections

204‑1 Objects
204‑5 Application to non‑share dividends

204‑1  Objects

  The objects of this Division are to ensure that:
 (a) an entity and its *members cannot avoid the effect of the *benchmark rule by exploiting the *benchmark franking percentage of another entity; and
 (b) an entity does not stream *franked distributions and *tax‑exempt bonus shares; and
 (c) an entity does not stream *distributions to members of the entity who derive a *greater benefit from franking credits than other members.

204‑5  Application

 (1) The rules in this Division will apply to an entity even if it is not subject to the benchmark rule.

 (2) This Division applies to non‑share dividends in the same way as it applies to distributions.

Subdivision 204‑B—Linked distributions

Guide to Subdivision 204‑B

204‑10  What this Subdivision is about

      This Subdivision prevents the exploitation of a corporate tax entity's benchmark franking percentage by another corporate tax entity, or that other entity's members, by imposing a franking debit where there is exploitation.

Table of sections

Operative provisions

204‑15 Linked distributions

[This is the end of the Guide.]

Operative provisions

204‑15  Linked distributions

Franking debit arises where a distribution by one entity is substituted for a distribution by another

 (1) This section gives rise to a *franking debit if:
 (a) the exercise of a choice or selection by a *member of an entity (the first entity); or
 (b) the member's failure to exercise a choice or