Document ID: chunk:federal_register_of_legislation:C2012C00388:clause:4_2:p2
Version: federal_register_of_legislation:C2012C00388
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 2/4)
Character Range: 36814–39507

amount) to its share capital account from another of its accounts that equalled the tainting amount (the old Division 7B tainting amount), within the meaning of old Division 7B, in relation to the share capital account immediately before the old Division 7B close‑off day; and
 (b) none of the exclusions in sections 197‑10 to 197‑40 of new Division 197 applied, to any extent, in relation to the notionally transferred amount.

 (2) No franking debit arises under Subdivision 197‑B of new Division 197 in relation to the notionally transferred amount.

197‑25  Special provisions if company chooses to untaint after introduction day

 (1) This section applies if, after the introduction day, the company chooses under section 197‑55 of new Division 197 to untaint its share capital account.

Working out the amount of section 197‑60 untainting tax

 (2) For the purpose of section 197‑60 of new Division 197, the tainting amount at the time of the choice to untaint is taken to consist of:
 (a) the amounts (the old Division 7B tainting amount components) that made up the old Division 7B tainting amount; and
 (b) any amounts to which new Division 197 applies that have been transferred to the company's share capital account since the introduction day and before the choice to untaint is made.

Note 1: The company will not be liable to untainting tax if it is covered by subsection (5).

Note 2: If the company is covered by subsection (6), the old Division 7B tainting amount components will not be included in the tainting amount for the purpose of section 197‑60.

 (3) For the purpose of section 197‑60 of new Division 197, a reference to the section 197‑45 franking debit that arose in relation to an old Division 7B tainting amount component is taken to be a reference to the tax‑paid‑basis franking debit amount in relation to that component (see subsection (4)).

 (4) For the purpose of subsection (3), the tax‑paid‑basis franking debit amount, in relation to an old Division 7B tainting amount component, is the amount worked out in accordance with the formula:
where:

class A franking debit means the class A franking debit (if any) that arose under section 160ARDV of old Division 7B in relation to the old Division 7B tainting amount component.

class C franking debit means the class C franking debit that arose under section 160ARDQ or 160ARDV of old Division 7B in relation to the old Division 7B tainting amount component.

 (5) The company is not liable to untainting tax under section 197‑60 of new Division 197 in relation to the choice to untaint if:
 (a) during the period from the time when the company's share capital account became tainted under old Division 7B