Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:16_46f
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 16 cl 46F
Character Range: 235110–237602

46F  Rebate not allowable for certain dividends

 (1) In this section:

exempting entity has the same meaning as in the Income Tax Assessment Act 1997.

group company has the same meaning as in section 160AFE of this Act.

unfranked part of a dividend (including a dividend that is unfrankable under the Income Tax Assessment Act 1997), means that part of the dividend that is equal to the amount worked out using the following formula:
where:

corporate tax rate has the same meaning as in the Income Tax Assessment Act 1997.

franking credit on the dividend means the amount of the franking credit on the dividend, worked out under Subdivision 202‑D of the Income Tax Assessment Act 1997.

 (2) Subject to this section, a shareholder is not entitled to, and must not be allowed, a rebate under section 46 or 46A in respect of:
 (a) if a dividend was paid to the shareholder by a company other than an exempting entity, or by an exempting entity and item 6 or 7 of the table in section 208‑130 of the Income Tax Assessment Act 1997 applied in relation to the dividend:
 (i) the unfranked part of the dividend; or
 (ii) any part of the dividend in respect of which a determination is made under Subdivision 204‑D of the Income Tax Assessment Act 1997, or under paragraph 177EA(5)(b) of this Act; or
 (b) if a dividend was made to the shareholder by an exempting entity and item 6 or 7 of the table in section 208‑130 of the Income Tax Assessment Act 1997 does not apply to the dividend—any part of the dividend.

 (3) Subject to subsection (4), subsection (2) does not apply if:
 (a) the shareholder is a group company in relation to the company paying the dividend in relation to the year of income in which the dividend is paid; or
 (b) were the tests in section 160AFE for working out relationships between companies to apply to a particular time rather than in relation to a year of income—the shareholder would have been a group company in relation to the company paying the dividend at all times during the period of 12 months ending on the day on which the dividend was paid.

 (4) Subsection (3) does not affect the application of subsection (2) to the extent that subsection (2) deals with the payment of the unfranked part of a dividend (whether or not under subparagraph (a)(i) of that subsection):
 (a) to a shareholder that is a prescribed dual resident at the time the dividend is paid; or
 (b) by a company that is a prescribed dual resident at the time the dividend is paid.