Document ID: chunk:federal_register_of_legislation:C2016C00828:section:22:p2
Version: federal_register_of_legislation:C2016C00828
Segment Type: section
Provision Reference: s 22 (pt 2/2)
Character Range: 23928–25984

losses that are carried forward) for the transferring bank;
are taken to have been derived or incurred by, or to have occurred in relation to, the receiving bank and not the transferring bank.
 (5) Where a succession day is fixed for a receiving bank and the relevant transferring bank, then, for the purposes of Part 3‑6 of the Income Tax Assessment Act 1997 (about the imputation system):
 (a) if the transferring bank has a franking surplus at the end of the day before the succession day, then, at the beginning of the succession day:
 (i) a franking debit equal to that franking surplus arises in the transferring bank; and
 (ii) a franking credit equal to that franking surplus arises in the receiving bank; and
 (b) if the transferring bank has a franking deficit at the end of the day before the succession day and the succession day is not the first day of the transferring bank's income year, then, at the beginning of the succession day:
 (i) a franking credit equal to that franking deficit arises in the transferring bank; and
 (ii) a franking debit equal to that franking deficit arises in the receiving bank.
 (6) Subsections (3), (4) and (5) do not limit the generality of subsection (2).
 (7) If, in any respect, the operation of subsection (2) requires further clarification, regulations may be made modifying or adapting the application of particular provisions of the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997 for that purpose.
 (8) For the purposes of subsection (2), where the dissolution of a transferring bank under complementary legislation involves any cancellation or other disposal of the shareholding in that bank, that cancellation or other disposal of a transferring bank is to be regarded as an effect of the complementary legislation.
 (9) This section applies to BNZ and BNZ Savings only in so far as the business of BNZ Savings relating to its Australian operations vests in BNZ.
 (10) In this section, complementary legislation includes parallel New Zealand legislation.

Part 5—Miscellaneous