Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:10_1:p4
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 10 cl 1 (pt 4/13)
Character Range: 59461–62463

not exempting entities
220‑505 Post‑choice NZ franking company is not automatically prescribed person
220‑510 Parent company's status as prescribed person sets status of all other members of same wholly‑owned group

NZ franking companies' exempting accounts

220‑600 Keeping exempting accounts in Australian currency
220‑605 Effect on exempting account if NZ franking choice ceases to be in force

Tax effect of distribution franked by NZ franking company with an exempting credit

220‑700 Tax effect of distribution franked by NZ franking company with an exempting credit

Joint and several liability for NZ resident company's unmet franking liabilities

220‑800 Joint and several liability for NZ resident company's franking tax etc.

Franking NZ franking companies' distributions

220‑100  Residency requirement for franking

 (1) An *NZ franking company satisfies the residency requirement when making a *distribution only if the distribution is made at least one month after the notice constituting the company's *NZ franking choice was given to the Commissioner.

Note: This section is relevant to both section 202‑5 and section 208‑60, which let a company frank a distribution, or frank a distribution with an exempting credit, only if the company satisfies the residency requirement when making the distribution.

 (2) Section 202‑20, as applying because of section 220‑25, has effect subject to this section.

Note: Section 202‑20 sets out how a company satisfies the residency requirement when making a distribution.

220‑105  Unfrankable distributions by NZ franking companies

 (1) These *distributions by an *NZ franking company are *unfrankable:
 (a) a conduit tax relief additional dividend (as defined in section OB1 of the Income Tax Act 1994 of New Zealand);
 (b) a supplementary dividend (as defined in that section).

 (2) This section does not limit section 202‑45 (about *unfrankable distributions).

220‑110  Maximum franking credit under section 202‑60

  For the purposes of working out the *maximum franking credit for a *frankable distribution made by an *NZ franking company in a currency other than Australian currency, translate the amount of the distribution into Australian currency at the exchange rate applicable at the time of the decision to make the *distribution.

[The next section is section 220‑200.]

NZ franking companies' franking accounts etc.

220‑200  Keeping franking accounts in Australian currency

  A *franking account of an *NZ franking company must be kept in Australian currency.

220‑205  Franking credit for payment of NZ franking company's withholding tax liability

 (1) A *franking credit arises in the *franking account of a company on the day a payment is made of *withholding tax that the company is liable under section 128B of the Income Tax Assessment Act 1936 to pay, if:
 (a) because of section 220‑25, the company satisfies the *residency requirement for the income year in which it derived the income on which it was liable