Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_1:p5
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 5/20)
Character Range: 11819–14644

(distributions by certain *corporate tax entities from sources in Norfolk Island);
 (c) where the purchase price on the buy‑back of a *share by a *company from one of its *members is taken to be a dividend under section 159GZZZP of that Act—so much of that purchase price as exceeds what would be the market value (as normally understood) of the share at the time of the buy‑back if the buy‑back did not take place and were never proposed to take place;
 (d) a distribution in respect of a *non‑equity share;
 (e) a distribution that is taken under subsection 46M(3) or paragraph 46M(4)(a) of that Act not to be a *frankable dividend (dividends paid from certain accounts such as *share capital accounts);
 (f) an amount that is taken to be an unfrankable distribution under section 160APAAAA or 160APAAAB of that Act;
 (g) an amount that is taken to be a dividend for any purpose under any of the following provisions:
 (i) Division 7A of Part III of that Act (distributions to entities connected with a *private company);
 (ii) section 108 of that Act (loans to shareholders and associates);
 (iii) section 109 of that Act (excessive payments to shareholders, directors and associates);
 (iv) section 47A of that Act (distribution benefits—CFCs);
 (h) an amount that is taken to be an unfranked dividend for any purpose:
 (i) under section 45 of that Act (streaming bonus shares and unfranked dividends);
 (ii) because of a determination of the Commissioner under section 45C of that Act (streaming dividends and capital benefits).

Subdivision 202‑D—Amount of the franking credit on a distribution

Guide to Subdivision 202‑D

202‑50  What this Subdivision is about

      The amount of the franking credit on a distribution is that stated in the distribution statement, unless the amount stated exceeds the maximum franking credit for the distribution.
      In that case, the amount of the franking credit on the distribution is taken to be the maximum franking credit for the distribution, worked out under this Subdivision.

Table of sections

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 current corporate tax rate, on the profits underlying the distribution.

[This is the end of the Guide.]

Operative provisions

202‑60  Amount of the franking credit on a distribution

 (1) The amount of the *franking credit on a *distribution is that