Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:10_14:p2
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 10 cl 14 (pt 2/4)
Character Range: 208285–211033

section 207‑35 because of the distribution is reduced from $30 to $9.

 If there is a beneficiary of the trust that is presently entitled to the trust's income, the amount of the distribution that flows indirectly to the beneficiary is reduced from $70 to $21 under this subsection.

What happens if both subsection 207‑90(2) and subsection (2) of this section would apply

 (3) If, apart from this subsection, both subsection 207‑90(2) and subsection (2) of this section would apply to an entity in relation to a *franked distribution, then:
 (a) apply subsection 207‑90(2) first; and
 (b) apply subsection (2) of this section on the basis that the amount of the *franked distribution had been reduced under subsection 207‑90(2).

207‑150  Distribution that flows indirectly to an entity

Whole of share of distribution manipulated

 (1) If a *franked distribution *flows indirectly to an entity in an income year in one or more of the following circumstances:
 (a) the entity is not a qualified person in relation to the distribution for the purposes of Division 1A of Part IIIAA of the Income Tax Assessment Act 1936;
 (b) the Commissioner has made a determination under paragraph 177EA(5)(b) of that Act that no imputation benefit (within the meaning of that section) is to arise in respect of the distribution for the entity;
 (c) the Commissioner has made a determination under paragraph 204‑30(3)(c) of this Act that no *imputation benefit is to arise in respect of the distribution for the entity;
 (d) the distribution is treated as an interest payment for the entity under section 207‑160 of this Act;
 (e) the distribution is made as part of a *dividend stripping operation;
then, for the purposes of this Act:
 (f) subsection (2), (3) or (4) (as appropriate) applies to the entity in relation to that income year; and
 (g) the entity is not entitled to a *tax offset under this Subdivision because of the distribution; and
 (h) if the distribution *flows indirectly through the entity to another entity—subsection 207‑35(3) and section 207‑45 do not apply to that other entity.

Partner

 (2) If the *franked distribution *flows indirectly to the entity as a partner in a partnership under subsection 207‑50(2), the entity can deduct an amount for that income year that is equal to its *share of the *franking credit on the distribution.

Beneficiary

 (3) If the *franked distribution *flows indirectly to the entity as a beneficiary of a trust under subsection 207‑50(3), the entity can deduct an amount for that income year that is equal to the lesser of:
 (a) its share amount in relation to the distribution that is mentioned in that subsection; and
 (b) its *share of the *franking credit on the distribution.

Trustee

 (4)