Document ID: chunk:federal_register_of_legislation:C2005A00147:clause:2_1:p5
Version: federal_register_of_legislation:C2005A00147
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 5/6)
Character Range: 132207–135080

end of the income year in which the *CGT event occurred.

802‑40  Effect of foreign tax credits on conduit foreign income

  The entity's conduit foreign income includes an amount if a credit arose for the entity under section 160AF of the Income Tax Assessment Act 1936 for the income year immediately before the one in which the relevant time occurs. The amount is worked out using the formula:

802‑45  Previous declarations of conduit foreign income

  The entity's conduit foreign income is reduced if:
 (a) the entity makes a *frankable distribution that has an *unfranked part; and
 (b) the entity declares an amount of the unfranked part to be conduit foreign income.
The amount of the reduction is the amount so declared.

Note: If the amount declared is less than the amount available for declaration, the difference is available for a later declaration.

802‑50  Receipt of an unfranked distribution from another Australian corporate tax entity

 (1) The entity's conduit foreign income is reduced if:
 (a) the entity (the receiving entity) receives from another *Australian corporate tax entity a *frankable distribution that has an *unfranked part; and
 (b) the *distribution statement for the *distribution declares an amount (the declared amount) of the unfranked part to be conduit foreign income; and
 (c) some or all of the declared amount is not *non‑assessable non‑exempt income under section 802‑20.

 (2) The amount of the reduction is the amount that is not *non‑assessable non‑exempt income under section 802‑20 less any expenses reasonably related to that amount.

802‑55  No double benefits

  An amount cannot be both:
 (a) an unfranked non‑portfolio dividend credit for an entity under section 46FB of the Income Tax Assessment Act 1936; and
 (b) counted towards:
 (i) the entity's *conduit foreign income; and
 (ii) the entity's *non‑assessable non‑exempt income under section 802‑20.

802‑60  No streaming of distributions

 (1) Subsection (2) has effect if:
 (a) an *Australian corporate tax entity makes one or more *frankable distributions in a *franking period; and
 (b) at least one of the *distributions has an *unfranked part; and
 (c) the entity declares an amount of the unfranked part to be *conduit foreign income.

 (2) If the entity does not, for that *franking period, declare the same proportion of *conduit foreign income for all *membership interests and *non‑share equity interests then, instead of the amount that it declared to be conduit foreign income on those *distributions, it is taken to have declared under section 802‑45 the greater amount that it would have declared had it declared that same proportion on all those distributions.

Note: Breaching subsection (2) may make the entity subject to a penalty under section 288‑80 in Schedule 1 to the Taxation Administration Act 1953 (about over declaring conduit