Document ID: chunk:federal_register_of_legislation:C2010C00617:clause:3_160atf
Version: federal_register_of_legislation:C2010C00617
Segment Type: clause
Provision Reference: sch 3 cl 160ATF
Character Range: 50681–53016

160ATF  Series of dividends crossing over 1 July 2000

 (1) This section deals with the situation in which:
 (a) a company pays a number of class C franked dividends under a resolution made before 1 July 2000; and
 (b) some of the dividends (the first series dividends) are paid before 1 July 2000; and
 (c) some of the dividends (the second series dividends) are paid on or after 1 July 2000.

 (2) For the purposes of this Part:
 (a) the first series dividends and the second series dividends are to be taken to have been made under separate resolutions; and
 (b) any declaration (the original declaration) made under section 160AQF or 160ASEL in relation to the dividends is taken to have effect only in relation to the first series dividends; and
 (c) if the company does not make a declaration under section 160AQF or 160ASEL in relation to the second series dividends before the reckoning day for the second series dividends, then:
 (i) in a case where the first series dividends were class C franked dividends—the company is to be taken to have made a declaration under section 160AQF that each dividend in the second series is a class C franked dividend to the extent of the same percentage as in the original declaration; and
 (ii) in a case where the first series dividends were also franked with a venture capital franked amount—the company is to be taken to have made a declaration under section 160ASEL that each dividend in the second series is a venture capital dividend to the extent of the same percentage as in the original declaration.

Note 1: Paragraph (a) means that the 2 series of dividends will have separate reckoning days (see the definition of reckoning day in section 160APA). The reckoning day for the second series dividends will be the day on which the first of the second series dividends is paid. This in turn affects the calculation of the required franking amount for the second series dividends.

Note 2: Paragraph (b) means that the company may make a fresh declaration under section 160AQF in relation to the second series dividends. The company may wish to do this to ensure that the second series dividends are franked to the new required franking amount that will need to be calculated under Division 4. It will also mean that the company may make a fresh declaration under section 160ASEL.