Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:10_1:p6
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 10 cl 1 (pt 6/13)
Character Range: 64630–67324

was in *deficit immediately before the end time, subsection 205‑45(3) applies in relation to the company as if it ceased to be a *franking entity at the end time.

Note: Subsection 205‑45(3) makes an entity liable to pay franking deficit tax if the entity ceases to be a franking entity and had a franking deficit immediately before ceasing to be a franking entity.

 (4) Subsection (3) does not limit the effect of subsection 205‑45(3).

Take account of franking debit arising under section 220‑605

 (5) Take account of any *franking debit arising under section 220‑605 because of the revocation or cancellation in working out for the purposes of this section whether the company's *franking account is in *surplus or *deficit immediately before the end time.

Note: Section 220‑605 provides for a franking debit to arise in the company's franking account immediately before the end time if, immediately before the end time, the company was a former exempting entity and its exempting account was in deficit.

[The next section is section 220‑300.]

Franking accounts of NZ franking company and some of its 100% subsidiaries

220‑300  NZ franking company's franking account affected by franking accounts of some of its 100% subsidiaries

 (1) This section has effect if all these conditions are met in relation to a company (the franking donor company) at a time:
 (a) the franking donor company is at the time:
 (i) an Australian resident or a *post‑choice NZ franking company; and
 (ii) a *100% subsidiary of a post‑choice NZ franking company (the parent company) that is not a 100% subsidiary of another company that is a member of the same *wholly‑owned group as the parent company;
 (b) the franking donor company is at the time a 100% subsidiary of a post‑choice NZ franking company (the NZ recipient company) in relation to which these requirements are met:
 (i) there must be no companies that are *NZ residents and 100% subsidiaries of the NZ recipient company interposed between it and the franking donor company;
 (ii) the NZ recipient company must be either the parent company or a 100% subsidiary of the parent company;
 (c) there are interposed between the NZ recipient company and the franking donor company at the time one or more companies, each of which:
 (i) is a 100% subsidiary of the NZ recipient company; and
 (ii) is neither an Australian resident nor an NZ resident.

What is a post‑choice NZ franking company?

 (2) A company is a post‑choice NZ franking company at a time if:
 (a) at the time, the company is an *NZ franking company; and
 (b) the notice constituting the *NZ franking choice that makes the company an NZ franking company at the time was given to