Document ID: chunk:federal_register_of_legislation:C2010C00499:clause:7_7
Version: federal_register_of_legislation:C2010C00499
Segment Type: clause
Provision Reference: sch 7 cl 7
Character Range: 46645–48578

7                                         the company incurs a liability to pay *franking deficit tax under section 205‑45 or 205‑50                                   the amount of the liability                                                                                                                      immediately after the liability is incurred

Note 1: On the assessment day, a franking credit that arose under item 1 of the table:
  *   is reversed by a franking debit that arises under item 1 of the table in section 219‑30; and
  *   is replaced with a franking credit that arises under item 2 of the table in this section.

Note 2: Section 219‑50 tells you how to work out the part of an amount that is attributable to the shareholders' share of the income tax liability of the company for the income year.

Note 3: To find out whether a tax offset under Division 207 is subject to the refundable tax offset rules: see section 67‑25.

 (3) A *franking credit covered by item 6 of the table arises at the end of the income year:
 (a) that is an income year of the last *partnership or trust interposed between:
 (i) the *life insurance company; and
 (ii) the *corporate tax entity that made the distribution; and
 (b) during which the *franked distribution *flows indirectly to the life insurance company.

219‑30  Franking debits

 (1) The table in section 205‑30 (except item 2) applies to a *life insurance company in the same way as it applies to any other company.

 (2) The following table sets out when a *franking debit arises under this section in the *franking account of a *life insurance company.

Franking debits in the franking account
Item                                     If:                                                                                                                    A debit of:                                                                                        Arises: