Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:10_1:p11
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 10 cl 1 (pt 11/13)
Character Range: 77044–79778

it would be apart from that section, the *franking credit arising in that entity's *franking account because of the *distribution is equal to the reduced tax offset.

 (2) Items 3 and 4 of the table in section 205‑15 have effect subject to this section.

Note: Items 3 and 4 of the table in section 205‑15 give rise to a franking credit for a franked distribution if the recipient is entitled under Division 207 to a tax offset for the distribution. Those items provide that the amount of the credit equals the amount of that offset.

[The next section is section 220‑500.]

Rules about exempting entities

220‑500  Publicly listed post‑choice NZ franking company and its 100% subsidiaries are not exempting entities

 (1) A company is not an *exempting entity at a particular time if:
 (a) it is a *post‑choice NZ franking company at the time; and
 (b) the company is a *listed public company at the time.

 (2) A company (the non‑exempting company) is not an *exempting entity at a particular time if at the time:
 (a) the non‑exempting company is a *100% subsidiary of a company (the listed company) that is not an exempting entity because of subsection (1); and
 (b) the non‑exempting company is an Australian resident or a *post‑choice NZ franking company; and
 (c) if:
 (i) there are one or more companies interposed between the non‑exempting company and the listed company; and
 (ii) one or more of the interposed companies are *NZ residents;
  all of the interposed companies that are NZ residents are post‑choice NZ franking companies.

 (3) This section has effect despite section 208‑20 (about an entity being an *exempting entity).

220‑505  Post‑choice NZ franking company is not automatically prescribed person

 (1) A *post‑choice NZ franking company is not a prescribed person under section 208‑40 for the purposes of working out whether another *corporate tax entity is an *exempting entity at a particular time because it is effectively owned by prescribed persons within the meaning of section 208‑25.

 (2) However, this section does not prevent the company from being taken under section 208‑45 to be a prescribed person for those purposes.

220‑510  Parent company's status as prescribed person sets status of all other members of same wholly‑owned group

 (1) This section has effect for the purposes of working out whether a company is an *exempting entity at a particular time because it is effectively owned by prescribed persons within the meaning of section 208‑25, if:
 (a) at the time the company is a *100% subsidiary of another company (the parent company) that is not a 100% subsidiary of another member of the same *wholly‑owned group; and
 (b) at the time the parent company is a *post‑choice NZ