Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 10/14)
Character Range: 3513723–3516344

an income year; and
 (b) the assessable income of the trust for that year includes an amount (the franking credit amount) that is all or a part of the additional amount of assessable income included under subsection (1) in relation to the distribution; and
 (c) disregarding Division 6E of Part III of the Income Tax Assessment Act 1936, the trustee of the trust is liable to be assessed (and pay tax) in respect of an amount (the assessable amount) under section 98, 99 or 99A of that Act in relation to the trust.
 (6) Despite any provisions in Division 6 of Part III of the Income Tax Assessment Act 1936, for the purposes of that Division, increase the assessable amount by so much of the franking credit amount as is equal to:
 (a) if the trustee of the trust is liable to be assessed (and pay tax) under section 98 of that Act—the sum of:
 (i) the trustee's *share of the *franking credit on the distribution in respect of the beneficiary; and
 (ii) the amount mentioned in section 207‑37; or
 (b) if the trustee of the trust is liable to be assessed (and pay tax) under section 99 or 99A of that Act—the sum of:
 (i) the trustee's share of the franking credit on the distribution; and
 (ii) the amount mentioned in section 207‑37.

207‑37  Attributable franked distribution—trusts
 (1) The amount is the product of:
 (a) the amount of the *franked distribution (to the extent that an amount of the franked distribution remained after reducing it by deductions that were directly relevant to it); and
 (b) the beneficiary's or the trustee's (as the case requires) *share of the franked distribution (see section 207‑55), divided by the amount of the franked distribution.
 (2) Subsection (3) applies if the net income of the trust estate (disregarding the amount of any *franking credits) for the relevant income year falls short of the sum of:
 (a) the *net capital gain (if any) of the trust estate for the income year; and
 (b) the total of all *franked distributions (if any) included in the assessable income of the trust estate for the income year (to the extent that an amount of the franked distributions remained after reducing them by deductions that were directly relevant to them).
 (3) For the purposes of subsection (1), replace paragraph (a) of that subsection with the following paragraph:
 (a) the product of:
 (i) the amount of the *franked distribution (to the extent that an amount of the franked distribution remained after reducing it by deductions that were directly relevant to it); and
 (ii) the *net income of the trust estate for that income year (disregarding the amount of any *franking