Document ID: chunk:federal_register_of_legislation:C2010C00673:body:0:p19
Version: federal_register_of_legislation:C2010C00673
Segment Type: other
Provision Reference: 
Character Range: 45389–47993

mentioned in that subsection, then,
for the purposes of this section, the amount is to be treated
as being part of the instalment.
Class B deficit deferral tax
Situation that gives rise to liability
  "160AQJB. (1) If:
  (a) during a franking year (the 'first franking year') a
company pays one or more instalments under section 221AZK for a
year of income; and
  (b) at a particular time during the next franking year (the
'second franking year') the company receives a refund of the whole or
a part of the instalment, or one or more of the instalments,
under section 221AZL or 221AZQ; and
  (c) assuming that the refund, together with any previous
refund of one or more instalments for the year of income, had
been received by the company on the last day of the first
franking year, the company would have had a class B franking
deficit, or an increased class B franking deficit, at the end
of the first franking year;
a class B deficit deferral amount (defined in subsection (2))
arises in relation to the company and the refund.
Class B deficit deferral amount
  "(2) The 'class B deficit deferral amount' is the amount of
the class B franking deficit, or the amount of the increase in
the class B franking deficit, referred to in paragraph (1)(c).
Amount of class B deficit deferral tax
  "(3) If a class B deficit deferral amount arises in relation
to a company and a refund, the company is liable to pay class B
deficit deferral tax in relation to the refund. The amount of
the tax is the gross class B deficit deferral amount (see
subsection (4)) reduced by any class B deficit deferral tax
already payable by the company in relation to refunds received
in the second franking year.
Gross class B deficit deferral amount
  "(4) The 'gross class B deficit deferral amount' is worked
out using the following formula:
             (  Class B deficit  x  33  )
             (  deferral amount     67  )
Additional amounts taken to be part of instalment
  "(5) If an amount is paid under subsection 221AZR(1) in the
same year as the instalment mentioned in that subsection, then,
for the purposes of this section, the amount is to be treated
as being part of the instalment.".
  48. Heading to Subdivision C of Division 5 of Part IIIAA:
After "Deficit Tax", insert "and Deficit Deferral Tax".

  49. Paragraph 160AQK(1)(a):
Omit the paragraph, substitute:
  "(a) a company has become liable to pay:
    (i) class A franking deficit tax for a franking year; or
    (ii) class B franking deficit tax for a franking year; or
    (iii) class A deficit deferral tax in relation to the
refund of one or more