Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p13
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 13/22)
Character Range: 6973317–6976209

reduced if:
 (a) the entity makes a *frankable distribution that has an *unfranked part; and
 (b) the entity declares an amount of the unfranked part to be conduit foreign income.
The amount of the reduction is the amount so declared.
Note: If the amount declared is less than the amount available for declaration, the difference is available for a later declaration.

802‑50  Receipt of an unfranked distribution from another Australian corporate tax entity
 (1) The entity's conduit foreign income is reduced if:
 (a) the entity (the receiving entity) receives from another *Australian corporate tax entity a *frankable distribution that has an *unfranked part; and
 (b) the *distribution statement for the *distribution declares an amount (the declared amount) of the unfranked part to be conduit foreign income; and
 (c) some or all of the declared amount is not *non‑assessable non‑exempt income under section 802‑20.
 (2) The amount of the reduction is the amount that is not *non‑assessable non‑exempt income under section 802‑20 less any expenses reasonably related to that amount.

802‑55  No double benefits
  An amount cannot be both:
 (a) an unfranked non‑portfolio dividend credit for an entity under section 46FB of the Income Tax Assessment Act 1936; and
 (b) counted towards:
 (i) the entity's *conduit foreign income; and
 (ii) the entity's *non‑assessable non‑exempt income under section 802‑20.

802‑60  No streaming of distributions
 (1) Subsection (2) has effect if:
 (a) an *Australian corporate tax entity makes one or more *frankable distributions in a *franking period; and
 (b) at least one of the *distributions has an *unfranked part; and
 (c) the entity declares an amount of the unfranked part to be *conduit foreign income.
 (2) If the entity does not, for that *franking period, declare the same proportion of *conduit foreign income for all *membership interests and *non‑share equity interests then, instead of the amount that it declared to be conduit foreign income on those *distributions, it is taken to have declared under section 802‑45 the greater amount that it would have declared had it declared that same proportion on all those distributions.
Note: Breaching subsection (2) may make the entity subject to a penalty under section 288‑80 in Schedule 1 to the Taxation Administration Act 1953 (about over declaring conduit foreign income).
Example: There are 10,000 membership interests in AusCo Limited, 7,500 held by foreign residents and 2,500 held by Australian residents. It has $1,800 of conduit foreign income.
 AusCo makes an unfranked distribution of 50 cents per membership interest to all of its members. It declares $1,500 of the distribution to be conduit foreign income for its 7,500 foreign membership interests (20 cents per membership interest or 40% of each distribution) and none for its Australian membership interests.
 AusCo is