Document ID: chunk:federal_register_of_legislation:C2010C00576:clause:4_2:p1
Version: federal_register_of_legislation:C2010C00576
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 1/2)
Character Range: 81684–84328

2  Subsections 67‑25(1) to (1C)
Repeal the subsections, substitute:

Franked distributions

 (1) *Tax offsets available under Division 207 (which sets out the effects of receiving a *franked distribution) or Subdivision 210‑H (which sets out the effects of receiving a *distribution *franked with a venture capital credit) are subject to the refundable tax offset rules, unless otherwise stated in this section.

 (1A) Where the trustee of a *non‑complying superannuation fund or a *non‑complying ADF is entitled to a *tax offset under Division 207 because a *franked distribution is made to, or *flows indirectly to, the trustee, the tax offset is not subject to the refundable tax offset rules.

 (1B) Where:
 (a) a trustee is entitled to a *tax offset under Division 207 because a *franked distribution *flows indirectly to the trustee in circumstances described in subsection 207‑35(4) (which deals with trustees who are liable to be assessed on the net income of a trust under section 98, 99 or 99A of the Income Tax Assessment Act 1936); and
 (b) the trustee is liable to be assessed under section 98 or 99A of the Income Tax Assessment Act 1936 on a share of the net income of the trust estate that is, in whole or in part, attributable to the distribution;
the tax offset is not subject to the refundable tax offset rules.

 (1C) Where a *corporate tax entity is entitled to a *tax offset under Division 207 because a *franked distribution is made to the entity, the tax offset is not subject to the refundable tax offset rules unless:
 (a) the entity is an *exempt institution that is eligible for a refund; or
 (b) the entity is a *life insurance company and the *membership interest on which the distribution was made was not held by the company on behalf of its shareholders at any time during the period:
 (i) starting at the beginning of the income year of the company in which the distribution is made; and
 (ii) ending when the distribution is made.

 (1D) Where a *corporate tax entity is entitled to a *tax offset under Division 207 because a *franked distribution *flows indirectly to the entity, the tax offset is not subject to the refundable tax offset rules unless:
 (a) the entity is an *exempt institution that is eligible for a refund; or
 (b) the entity is a *life insurance company and the company's interest in the *membership interest on which the distribution was made was not held by the company on behalf of its shareholders at any time during the period:
 (i) starting at the beginning of the income year of the company in which the distribution is made; and
 (ii) ending when the distribution is made.

 (1E)