Document ID: chunk:federal_register_of_legislation:C2004A00898:clause:1_160apaaab:p2
Version: federal_register_of_legislation:C2004A00898
Segment Type: clause
Provision Reference: sch 1 cl 160APAAAB (pt 2/3)
Character Range: 111107–113906

share dividends.
The available frankable profits immediately before the company pays the non‑share dividend are then the amount estimated by the company having regard to the expected profits referred to in paragraph (c).

 (7) The amount estimated under subsection (6) must not exceed:
where:

actual available frankable profits is the available frankable profits the company would have immediately before paying the non‑share dividend apart from subsection (6).

adjusted expected profits is the lesser of:
 (a) the available profits that it is reasonable to expect will arise after payment of the non‑share dividend and before payment of the committed share dividends; and
 (b) the difference between the amount of the frankable non‑share dividend that would, apart from subsection (6), arise under subsections (2) and (3) and the amount of the frankable non‑share dividend that would, apart from subsection (6), arise under those subsections if the committed share dividends were ignored.
For the purposes of paragraph (b), a frankable non‑share dividend of nil amount is taken to arise under subsection (2).

 (8) A class C franking debit arises for a company if:
 (a) the company anticipates available frankable profits under subsection (6); and
 (b) the available frankable profits of the company are negative:
 (i) when the last of the committed share dividends are paid; or
 (ii) immediately before the end of the franking year following the franking year in which the non‑share dividend is paid;
  whichever is the earlier.

 (9) The class C franking debit that arises under subsection (8) is equal to the lesser of:
 (a) the amount by which the available frankable profits is below zero; and
 (b) the franked amount of the non‑share dividend.

 (10) In working out the company's available profits for the purposes of subsections (8) and (9), disregard:
 (a) any dividends that:
 (i) the company announces, or becomes committed to or resolves (formally or informally) to pay after the payment of the non‑share dividend; and
 (ii) has not been paid; and
 (b) any estimate made by the company under subsection (6) after the non‑share dividend is paid.

 (11) If a company pays a number of non‑share dividends at the same time, this section applies as if:
 (a) a reference to a non‑share dividend were a reference to each of those non‑share dividends; and
 (b) the reference in paragraph (1)(b) to the amount of the non‑share dividend were a reference to the sum of the amounts of the non‑share dividends; and
 (c) the reference in subsection (4) to the available frankable profits were a reference to the amount worked out using the formula:
 (d) the reference to the amount of the frankable non‑share dividend in paragraph (b) of the definition of adjusted expected profits in subsection (7)