Document ID: chunk:federal_register_of_legislation:C2010C00617:clause:1_46fa:p2
Version: federal_register_of_legislation:C2010C00617
Segment Type: clause
Provision Reference: sch 1 cl 46FA (pt 2/3)
Character Range: 5749–8304

to the flow‑on amount;
 (b) if there is a class C required franking amount, but no class A required franking amount, for the flow‑on dividend—the class C franked amount is taken to be increased by an amount equal to the flow‑on amount;
 (c) if there are both a class A required franking amount and a class C required franking amount for the flow‑on dividend:
 (i) the class A franked amount is taken to be increased by an amount equal to so much of the flow‑on amount as is necessary to have the flow‑on dividend franked to the class A required franking amount; and
 (ii) the class C franked amount is taken to be increased by an amount equal to the remainder (if any) of the flow‑on amount.
For the purposes of this section, there is no class A or class C required franking amount if that amount is nil.

Wholly owned by non‑resident company

 (6) The resident company is wholly owned by the non‑resident company if all the shares in the resident company are held by and beneficially owned by the non‑resident company.

 (7) However, the company is not wholly owned by the non‑resident company if a person is in a position to affect rights, in relation to the resident company, of the non‑resident company.

 (8) The resident company is also not wholly owned by the non‑resident company if at some future time a person will be in a position to affect rights as described in subsection (7).

A person in a position to affect rights

 (9) A person is in a position to affect rights of a company in relation to another company if the person has a right, power or option:
 (a) to acquire those rights from one or other of those companies; or
 (b) to do something that would prevent one or other of those companies from exercising its rights for its own benefit, or from receiving any benefit arising from having those rights.

 (10) It does not matter whether the person has the right, power or option because of the constitution of one or other of those companies, any agreement or otherwise.

Definitions

 (11) In this section:

fully‑franked dividend means a dividend whose franking percentage (within the meaning of section 160APA) is 100%.

group company has the same meaning as in section 160AFE.

non‑portfolio dividend has the same meaning as in section 317.

non‑resident company means a company that is not a resident.

unfranked amount for a dividend (including a dividend that is not a frankable dividend within the meaning of section 160APA) means so much of the dividend as has not been franked in accordance with section 160AQF or 160AQFA.