Document ID: chunk:federal_register_of_legislation:C2010C00617:clause:1_46fb
Version: federal_register_of_legislation:C2010C00617
Segment Type: clause
Provision Reference: sch 1 cl 46FB
Character Range: 8307–10137

46FB  Unfranked non‑portfolio dividend account

Company may establish account

 (1) A company may establish an unfranked non‑portfolio dividend account.

Account surplus

 (2) An unfranked non‑portfolio dividend account surplus exists for a company at a particular time if the company's total unfranked non‑portfolio dividend credits arising before that time exceed its total unfranked non‑portfolio dividend debits arising before that time.

 (3) The amount of the surplus is equal to the amount of the excess.

Credits

 (4) An unfranked non‑portfolio dividend credit arises for a company if:
 (a) the company is paid an unfranked non‑portfolio dividend; and
 (b) the company is not a group company in relation to the company that paid the dividend in relation to the year of income in which the dividend is paid; and
 (c) but for subparagraph 46F(2)(a)(i), the company would be entitled to a rebate under section 46 in respect of the unfranked amount of the dividend.
The amount of the credit is the unfranked amount of the dividend. The credit arises when the dividend is paid to the company.

Debits

 (5) An unfranked non‑portfolio dividend debit arises for a company if the company makes a declaration under paragraph 46FA(1)(f) in relation to a dividend paid on a particular day. The amount of the debit is the flow‑on amount under subsection 46FA(2). The debit arises when the declaration is made.

Definitions

 (6) In this section:

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

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

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.

Income Tax Assessment Act 1997