Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 1/14)
Character Range: 3491614–3494508

14                              the entity *receives a refund of Australian DMT tax; and                                                                                                                                     that part of the refund that is attributable to the period during which the entity was a franking entity                                                                                                                                                         on the day on which the refund is received
                                the entity satisfies the *residency requirement for the income year corresponding to the *Fiscal Year to which the refund relates; and
                                the entity was a *franking entity during the whole or part of the income year to which the refund relates

Note: For completeness, the table refers to some franking debits that arise under other sections of the Act. This does not mean that separate franking debits arise both under the relevant section and this table.
 (2) Despite item 2 of the table in subsection (1), no debit arises on that part of the refund that is attributable to any of the following:
 (a) a payment of income tax in relation to an *RSA component;
 (b) a *tax offset that is subject to the refundable tax offset rules because of section 67‑30 (about R&D).
 (3) The proportion is the standard corporate tax rate (within the meaning of Part IVA of the Income Tax Assessment Act 1936) divided by 40%.

205‑35  Refund of income tax, diverted profits tax or Australian DMT tax
 (1) An entity receives a refund of income tax if and only if:
 (a) either:
 (i) the entity receives an amount as a refund; or
 (ii) the Commissioner applies a credit, or an *RBA surplus, against a liability or liabilities of the entity; and
 (b) the refund of the amount, or the application of the credit, represents in whole or in part:
 (i) a return to the entity of an amount paid or applied to satisfy the entity's liability to pay income tax; or
 (ii) the amount remaining after applying a *loss carry back tax offset, or a *tax offset that is subject to the refundable tax offset rules because of section 67‑30 (about R&D), against the entity's basic income tax liability.
 (1A) An entity receives a refund of diverted profits tax if and only if:
 (a) either:
 (i) the entity receives an amount as a refund; or
 (ii) the Commissioner applies a credit, or an *RBA surplus, against a liability or liabilities of the entity; and
 (b) the refund of the amount, or the application of the credit, represents in whole or in part a return to the entity of an amount paid or applied to satisfy the entity's liability to pay *diverted profits tax.
 (1B) An entity receives a refund of Australian DMT tax if and only if:
 (a) either:
 (i) the entity receives an amount as a refund; or
 (ii) the Commissioner applies a credit, or an