Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:17_4:p3
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 17 cl 4 (pt 3/4)
Character Range: 245330–248212

(b) were paid within the preceding 2 income years or were paid under the same scheme under which the entity pays the non‑share dividend.

 (2) The amount of the franked part of a *non‑share dividend is worked out using the following formula:

215‑25  Anticipating available frankable profits

 (1) A *corporate tax entity that pays a *non‑share dividend may anticipate *available frankable profits if:
 (a) the entity:
 (i) has announced the payment of; or
 (ii) is committed or has resolved (formally or informally) to pay;
  *distributions other than non‑share dividends (the committed distributions) after payment of the non‑share dividend; and
 (b) but for this subsection, section 215‑15 would apply to the non‑share dividend; and
 (c) the entity's available frankable profits would be greater than nil at the relevant time if the committed distributions were ignored; and
 (d) it is reasonable to expect that available profits will arise after payment of the non‑share dividend and before payment of the committed distributions.
The available frankable profits immediately before the entity pays the non‑share dividend are then the amount estimated by the entity, having regard to the expected profits referred to in paragraph (c).

 (2) The amount estimated under subsection (1) must not exceed:
where:

actual available frankable profits is the *available frankable profits the entity would have immediately before paying the *non‑share dividend apart from subsection (1).

adjusted expected profits is the lesser of:
 (a) the available profits that it is reasonable to expect will arise after payment of the *non‑share dividend and before payment of the committed distributions; and
 (b) the difference between:
 (i) in a case where the single non‑share dividend is the only one paid at a particular time—the amount of the non‑share dividend that would, apart from subsection (1), be *frankable under section 215‑15 and the amount of the non‑share dividend that would, apart from subsection (1), be frankable under that section if the committed distributions were ignored; and
 (ii) in a case where the non‑share dividend is one of a number of non‑share dividends made at the same time—the sum of the amounts of the non‑share dividends that would, apart from subsection (1), be frankable under section 215‑15 and the sum of the amounts of the non‑share dividends that would, apart from subsection (1), be frankable under that section if the committed distributions were ignored.

 (3) A *franking debit arises for the entity if:
 (a) the entity anticipates*available frankable profits under subsection (1); and
 (b) the available frankable profits of the entity are less than nil:
 (i) when the last of the committed distributions is made; or
 (ii) immediately before the end of the income year following the income year in which the *non‑share dividend is paid;
whichever