Document ID: chunk:federal_register_of_legislation:C2012C00388:clause:4_1:p8
Version: federal_register_of_legislation:C2012C00388
Segment Type: clause
Provision Reference: sch 4 cl 1 (pt 8/10)
Character Range: 29104–31835

to a franking credit.

 (3) In subsection (2), the applicable tax amount is the amount calculated in accordance with the formula:
where:

applicable tax rate means:
 (a) for a company with only lower tax members in relation to the tainting period—the *corporate tax rate; or
 (b) for a company with higher tax members in relation to the tainting period—the sum of:
 (i) the maximum rate specified in column 2 of the table in Part I of Schedule 7 to the Income Tax Rates Act 1986 that applies for the income year in which the choice is made; and
 (ii) 2.5%.

Note: The 2.5% referred to in subparagraph (b)(ii) relates to rates of Medicare levy and surcharge.

notional franking amount has the meaning given by subsection (4).

 (4) In subsection (3), the notional franking amount is the amount calculated in accordance with the formula:

197‑65  Choosing to untaint—further franking debits may arise

When this section applies

 (1) This section applies if:
 (a) a company chooses to untaint its *share capital account; and
 (b) the applicable franking percentage (within the meaning of subsection (3)) is higher than the percentage that was the *benchmark franking percentage in relation to the *franking period in which the transfer of an amount (the transferred amount) that is, or is part of, the *tainting amount occurred.

Note: If paragraph (b) is satisfied in relation to 2 or more amounts, this section is to be applied separately in relation to each of those amounts (so a separate franking debit will arise in relation to each of those amounts).

Franking debit arises in relation to making the choice

 (2) A *franking debit arises in the company's *franking account in relation to the transferred amount. The debit arises immediately before the end of the *franking period in which the choice to untaint is made.

 (3) The amount of the *franking debit is the amount by which the amount calculated in accordance with the following formula exceeds the amount of the franking debit that arose under section 197‑45 in relation to the transferred amount:
where:

applicable franking percentage means:
 (a) if, before the debit arises, the *benchmark franking percentage for the *franking period in which the choice to untaint is made has already been set by section 203‑30—that percentage; or
 (b) otherwise—100%.

197‑70  Due date for payment of untainting tax

  *Untainting tax is due and payable at the end of 21 days after the end of the *franking period in which the choice to untaint was made.

Note: For provisions about collection and recovery of untainting tax, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.

197‑75  General interest charge for late payment of untainting tax

  If any