Document ID: chunk:federal_register_of_legislation:C2010C00499:clause:7_2:p2
Version: federal_register_of_legislation:C2010C00499
Segment Type: clause
Provision Reference: sch 7 cl 2 (pt 2/3)
Character Range: 51624–54254

refund by the *shareholders' ratio.
            The result of this step is the part of the payment or refund that is attributable to the *shareholders' share of the income tax liability of the company for the income year.
 (3) For the purposes of this Part, the estimate mentioned in item 1 of the table in section 219‑15 (the part of a payment estimated to be attributable to the *shareholders' share of a company's income tax liability for an income year) must be worked out on the basis of:
 (a) subject to paragraph (b), the method statement in subsection (2); and
 (b) the company's reasonable estimate of the amounts that, on the company's *assessment day for the income year, will be:
 (i) its total income tax liability for the income year; and
 (ii) the part of that total income tax liability that is attributable to its shareholders.

 (4) In working out the part of the income tax liability of a *life insurance company that is attributable to the shareholders of the company for the purposes of this section, regard is to be had to the accounting records of the company.

219‑55  Adjustment resulting from an amended assessment

 (1) This section applies in relation to the *franking account of a *life insurance company if:
 (a) the assessment of the company's income tax liability for an income year is amended on a particular day (the adjustment day); and
 (b) the *shareholders' ratio (the new ratio) based on the amended assessment is different from the shareholders' ratio used previously in relation to that income year to work out a *franking credit or *franking debit for the company; and
 (c) the franking account would have a different balance on the adjustment day if the new ratio had been used to work out all the franking credits and franking debits covered by paragraph (b).

 (2) On the adjustment day, a *franking credit or *franking debit (as appropriate) of the amount worked out under subsection (3) arises in the *franking account.

 (3) The amount is an adjustment that will bring the *franking account to the balance that it would have on the adjustment day if the new ratio had been used to work out all the *franking credits and *franking debits covered by paragraph (1)(b).

Example: On the basis of a shareholders' ratio of 60% for the income year, franking credits of the amounts of $6,000, $6,000, $6,000 and $6,000 arose under item 2 of the table in section 219‑15 for Company X.

 An amended assessment results in a new shareholders' ratio of 70%. Under this section, a franking credit of $4,000 arises on the day of the amended assessment to bring the balance of the franking account