Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p3
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 3/21)
Character Range: 356526–359209

tax entity's 2001‑2002 income year ends after 30 June 2002, section 205‑70 of the Income Tax Assessment Act 1997 has effect in relation to the entity's assessment for that income year as if the following method statement had replaced the method statement in that section.

      Method statement
           Step 1. Work out the total amount of franking deficit tax that is covered by paragraph (1)(a).
           Step 2. Add to the step 1 result the excess that is covered by paragraph (1)(c).
            The result is the tax offset to which the entity is entitled under this section for the relevant year.

Late balancing entities—2002‑2003 income year
 (3) If:
 (a) a corporate tax entity's 2002‑2003 income year ends after 30 June 2003; and
 (b) the entity makes a valid election under section 205‑20 in that income year;
section 205‑70 of the Income Tax Assessment Act 1997 has effect in relation to the entity's assessment for that income year as if the following method statement had replaced the method statement in that section.

      Method statement
           Step 1. Work out the total amount of franking deficit tax that is covered by paragraph (1)(a) and was incurred before 30 June 2003.
           Step 2. Work out the total amount of franking deficit tax that is covered by paragraph (1)(a) and was incurred on 30 June 2003.
            Then reduce it by 30% if it exceeds 10% of the total amount of franking credits that arose in the entity's franking account during the period of 12 months immediately preceding that date.
           Step 3. Work out the total amount of franking deficit tax that is covered by paragraph (1)(a) and was incurred after 30 June 2003.
            Then reduce it by 30% if it exceeds 10% of the total amount of franking credits that arose in the entity's franking account after that date and before the end of the last day on which the entity incurred a franking deficit tax liability in the relevant year.
           Step 4. Work out the total amount of franking deficit tax that is covered by paragraph (1)(b) and was incurred in the 2001‑2002 income year.
           Step 5. Work out the excess that is covered by paragraph (1)(c).
           Step 6. Add up the results of steps 1, 2, 3, 4 and 5. The result is the tax offset to which the entity is entitled under this section for the relevant year.

Late balancing entities—later income years
 (4) If:
 (a) an income year of a corporate tax entity ends after 30 June 2004; and
 (b) the entity makes a valid election under section 205‑20 in that income year;
section 205‑70 of the Income Tax Assessment Act 1997 has effect in relation to the entity's assessment for that income