Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 9/19)
Character Range: 3774058–3776881

franking company satisfies the residency requirement when making a *distribution only if the distribution is made at least one month after the notice constituting the company's *NZ franking choice was given to the Commissioner.
Note: This section is relevant to both section 202‑5 and section 208‑60, which let a company frank a distribution, or frank a distribution with an exempting credit, only if the company satisfies the residency requirement when making the distribution.
 (2) Section 202‑20, as applying because of section 220‑25, has effect subject to this section.
Note: Section 202‑20 sets out how a company satisfies the residency requirement when making a distribution.

220‑105  Unfrankable distributions by NZ franking companies
 (1) These *distributions by an *NZ franking company are *unfrankable:
 (a) a conduit tax relief additional dividend (as defined in section OB1 of the Income Tax Act 1994 of New Zealand);
 (b) a supplementary dividend (as defined in that section).
 (2) This section does not limit section 202‑45 (about *unfrankable distributions).

220‑110  Maximum franking credit under section 202‑60
  For the purposes of working out the *maximum franking credit for a *frankable distribution made by an *NZ franking company in a *foreign currency, translate the amount of the distribution into Australian currency at the exchange rate applicable at the time of the decision to make the *distribution.

NZ franking companies' franking accounts etc.

220‑205  Franking credit for payment of NZ franking company's withholding tax liability
 (1) A *franking credit arises in the *franking account of a company on the day a payment is made of *withholding tax that the company is liable under section 128B of the Income Tax Assessment Act 1936 to pay, if:
 (a) because of section 220‑25, the company satisfies the *residency requirement for the income year in which it *derived the income on which it was liable to pay the withholding tax; and
 (b) the company is a *franking entity for the whole or part of that income year.
The amount of the credit equals the amount of the payment.
 (2) For the purposes of determining whether the company satisfies the *residency requirement for the income year described in paragraph (1)(a), section 205‑25 has effect as if the derivation of the income described in that paragraph were an event specified in a relevant table for the purposes of that section.

220‑210  Effect of franked distribution to NZ franking company or flowing indirectly to NZ franking company

No tax offset for NZ franking company
 (1) An *NZ franking company to which a *franked distribution is made or *flows indirectly is not entitled under Division 207 to a *tax offset for the *distribution. That Division has effect subject to this section.

Denial of tax offset does not stop