Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:28_13:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 28 cl 13 (pt 1/7)
Character Range: 421042–423693

13  After Division 210
Insert:

Division 214—Administering the imputation system

214‑1  Application

  This Division applies to a corporate tax entity if a liability to pay franking deficit tax arises for the entity under section 205‑25 of this Act because of events that occur within a period of 12 months ending on 30 June in any year (the balancing period).

214‑5  Entity must give a franking return

 (1) The entity must give the Commissioner a franking return for the balancing period setting out the following information before the end of the month immediately following the end of the period:
 (a) if the entity is a franking entity at the end of the balancing period—its franking account balance at the end of the period; and
 (b) if the entity ceases to be a franking entity during the balancing period—its franking account balance immediately before it ceased to be a franking entity; and
 (c) the amount (if any) of franking deficit tax that the entity is liable to pay under section 205‑25 of this Act because of events that have occurred, or are taken to have occurred, during the balancing period.

 (2) The return must be in writing in the approved form.

214‑10  Notice to a specific corporate tax entity

 (1) The Commissioner may give the entity a written notice requiring the entity to give the Commissioner a franking return for the balancing period.

 (2) The entity must comply with the requirement within the time specified in the notice, or within any further time allowed by the Commissioner.

 (3) The entity must comply with the requirement regardless of whether the entity has given, or has been required to give, the Commissioner a return under section 214‑5.

214‑15  Effect of a refund on franking returns

If no franking return is outstanding

 (1) If:
 (a) the entity receives a refund of income tax; and
 (b) the receipt of the refund gives rise to a liability, or an increased liability, to pay franking deficit tax because of the operation of subsection 205‑30(2) or (3) of this Act; and
 (c) when the refund is received, the entity does not have a franking return that is outstanding for the balancing period in which the liability arose;
the entity must give the Commissioner a franking return for the period within 14 days after the refund is received.

Refund received within 14 days before an outstanding franking return is due

 (2) If:
 (a) the entity receives a refund of income tax; and
 (b) the receipt of the refund gives rise to a liability, or an increased liability, to pay franking deficit tax because of the operation of subsection 205‑30(2) or (3) of this Act; and
 (c) when the refund is