Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 8/14)
Character Range: 3508861–3511617

this Subdivision
207‑35 Gross‑up—distribution made to, or flows indirectly through, a partnership or trustee
207‑37 Attributable franked distribution—trusts
207‑45 Tax offset—distribution flows indirectly to an entity

Key concepts
207‑50 When a franked distribution flows indirectly to or through an entity
207‑55 Share of a franked distribution
207‑57 Share of the franking credit on a franked distribution
207‑58 Specifically entitled to an amount of a franked distribution
207‑59 Franked distributions within class treated as single franked distribution

Gross‑up and tax offset

207‑30  Applying this Subdivision
  This Subdivision applies subject to Subdivisions 207‑D, 207‑E and 207‑F.
Note 1: Subdivision 207‑D sets out the cases in which the gross‑up and tax offset rules in this Subdivision and Subdivision 207‑A will not apply because the franked distribution (or a share of it) would not have been taxed in any case.
Note 2: Subdivision 207‑E sets out the exceptions to the rules in Subdivision 207‑D.
Note 3: Subdivision 207‑F sets out the cases in which the gross‑up and tax offset rules in this Subdivision and Subdivision 207‑A will not apply because the imputation system has been manipulated in a way that is not permitted under the income tax law.

207‑35  Gross‑up—distribution made to, or flows indirectly through, a partnership or trustee

Additional amount of assessable income
 (1) If:
 (a) a *franked distribution is made in an income year to an entity that is a partnership or the trustee of a trust; and
 (b) the entity is not a *corporate tax entity when the distribution is made; and
 (c) if the entity is the trustee of a trust—the trust is not a *complying superannuation entity when the distribution is made;
the assessable income of the partnership or trust for that income year includes the amount of the *franking credit on the distribution.
 (2) The amount is in addition to any other amount included in that assessable income in relation to the distribution under any other provision of this Act.
Note: The amount will affect the income tax liability of a partner in the partnership, or a beneficiary or the trustee of the trust: see Divisions 5 and 6 of Part III of the Income Tax Assessment Act 1936.
 (3) Subsection (4) applies if:
 (a) a *franked distribution is made, or *flows indirectly, to a partnership or the trustee of a trust in an income year; and
 (b) the assessable income of the partnership or trust for that year includes an amount (the franking credit amount) that is all or a part of the additional amount of assessable income included under subsection (1) in relation to the distribution; and
 (c) the distribution flows indirectly to an entity that is a partner in the partnership, or a beneficiary