Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_9:p5
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 9 (pt 5/9)
Character Range: 76052–78811

that share of the franking credit, provided the member is not itself a partnership or trust through which the distribution flows indirectly.
      Where the trustee, rather than a member, is the taxpayer on a share of the distribution, it is the trustee in that capacity who is given the tax offset under this Subdivision.

Table of sections

Operative provisions

207‑30 Applying this Subdivision
207‑35 When a franked distribution flows indirectly to an entity
207‑40 Effect on assessable income where distribution flows indirectly
207‑45 Adjustment of the amount included in the assessable income of an entity because of a distribution that flows indirectly
207‑50 Tax offset where distribution flows indirectly
207‑55 An entity's share of the franking credit on a franked distribution

[This is the end of the Guide.]

Operative provisions

207‑30  Applying this Subdivision

  This Subdivision applies subject to:
 (a) Subdivision 207‑E; and
 (b) Subdivision 207‑F.

Note 1: Subdivision 207‑D also contains adjustments to deal with cases where a distribution flows indirectly to an entity that is not a resident.

Note 2: Subdivision 207‑E sets out cases in which the rules in this Subdivision will not apply because the distribution is exempt income and so would not be taxed in any case. It also replaces the rules in this Subdivision where the distribution flows indirectly to exempt institutions that are eligible for a refund and, in some cases, to eligible entities within the meaning of Part IX of the Income Tax Assessment Act 1936 and to life insurance companies.

Note 3: Subdivision 207‑F sets out cases in which the rules in this Subdivision will not apply because the imputation system has been manipulated in a way that is not permitted under income tax law, for example by streaming distributions or dividend stripping.

207‑35  When a franked distribution flows indirectly to an entity

 (1) This section sets out the only circumstances in which a *franked distribution is taken to flow indirectly to an entity in an income year.

Partners

 (2) The distribution flows indirectly to the entity in the income year if:
 (a) the entity is a partner in a *partnership; and
 (b) either:
 (i) a share of the *net income of the partnership is included in the entity's assessable income for the income year under subsection 92(1) of the Income Tax Assessment Act 1936; or
 (ii) a share of the *partnership loss of the partnership is allowable as a deduction for the income year to the partner under subsection 92(2) of that Act; and
 (c) the whole or a part of that share of the net income or partnership loss of the partnership is attributable to:
 (i) an amount included in the assessable income of the partnership because the distribution