Document ID: chunk:federal_register_of_legislation:F2017L00529:body:0:p12
Version: federal_register_of_legislation:F2017L00529
Segment Type: other
Provision Reference: 
Character Range: 28861–31545

franking deficit tax liability in accordance with the rules contained in Division 205 of the Income Tax (Transitional Provisions) Act 1997 are required to lodge a franking return and meet their liability for franking deficit tax in accordance with the rules contained in Division 214 of the Income Tax (Transitional Provisions) Act 1997.

    Where a late balancing corporate tax entity that elects to have its franking deficit tax liability determined on 30 June 2017 incurs a liability to pay franking deficit tax under Division 205 of the Income Tax (Transitional Provisions) Act 1997, the franking return must be lodged in the approved form by 31 July 2017 except in certain cases. This is also the date on which the franking deficit tax is payable.

    In certain cases where a refund of income tax is received, the taxation law provides for a different payment date for franking deficit tax (namely, 14 days after that refund is received). In these cases the franking return accounting for that refund must be lodged by the payment date provided for in the law.

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    Lodgment of venture capital deficit tax returns

    An entity that is a Pooled Development Fund for the purposes of the Income Tax Assessment Act 1997 at the end of the income year, or that ceases to be a Pooled Development Fund during the income year, that has (or because of a refund of income tax, is taken to have) a deficit balance in its venture capital sub-account at the end of its 2016-17 income year, or immediately before it ceases to be a Pooled Development Fund during that year, is required to pay venture capital deficit tax under section 210-135 of the Income Tax Assessment Act 1997 and is required to lodge a venture capital deficit tax return for that year.

    Pooled Development Funds which have a nil or credit balance in the venture capital sub-account at the close of the income year or immediately before they cease to be Pooled Development Funds (and which are not taken to have a deficit at the relevant time by virtue of a refund of income tax) are not required to lodge a venture capital deficit tax return.

    Date of lodgment of venture capital deficit tax return

    The venture capital deficit tax return must be lodged in the approved form by the last day of the month following the end of the income year. (This is also the date on which the venture capital deficit tax is payable).

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    Requirement to lodge ancillary fund returns

    Under section 163 of the Income Tax Assessment Act 1936, I require every entity that is a trustee of a public ancillary fund (within the meaning of subsection 426-102(1)