Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_3:p3
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 3/11)
Character Range: 93770–96458

share of the *net income of the trust, for the income year in which the distribution is made, under section 98 of the Income Tax Assessment Act 1936; and
 (c) but for section 128D of that Act, that share would include income to which section 128B of that Act would apply but for paragraph 128B(3)(ga);
the share of the net income of the trust on which the trustee is liable to be assessed is reduced by an amount worked out under Subdivision 207‑J.

207‑100  Adjustment for non‑resident partners

  Where:
 (a) a *franked distribution *flows indirectly to an individual or *corporate tax entity as partner in a *partnership; and
 (b) the distribution does not flow indirectly to that entity as trustee of a trust; and
 (c) either:
 (i) a share of the *net income of the partnership is included in the entity's assessable income, for the income year in which the distribution is made, 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 to the entity, for the income year in which the distribution is made, under subsection 92(2) of that Act; and
 (d) but for section 128D of that Act, that share would include income to which section 128B of that Act would apply but for paragraph 128B(3)(ga);
a deduction is allowed from the assessable income of the entity for that income year of the amount worked out under Subdivision 207‑J.

Subdivision 207‑E—No gross‑up or tax offset where distribution is not taxed in any case

Guide to Subdivision 207‑E

207‑105  What this Subdivision is about

      If an entity would not in any case pay income tax on a franked distribution:
         • no amount is included in the entity's assessable income as a result of the franking credit on the distribution; and
         • the entity is not entitled to a tax offset as a result of the distribution.
      There are some exceptions to this principle.

Table of sections

Operative provisions

207‑110 Effect of exempt income on gross up and tax offset
207‑115 When a franked distribution flows indirectly through an entity
207‑120 Gross‑up and tax offset allowed because of the character of the income
207‑125 Gross‑up and tax offset allowed because entity is an exempt institution that is entitled to a refund
207‑130 Which exempt institutions are eligible for a refund?
207‑135 Residency requirement

[This is the end of the Guide.]

Operative provisions

207‑110  Effect of exempt income on gross up and tax offset

Tax effect on the entity to whom the distribution is made—no indirect flow through

 (1) Where:
 (a) a *franked distribution is made to an entity (the receiving entity); and
 (b)