Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_9:p1
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 9 (pt 1/9)
Character Range: 65565–68860

9                               an *on‑market buy‑back by a *company of a *membership interest in the company                                                                                   an amount equal to the debit that would have arisen if:                                                                                                                                                                                                      on the day on which the interest is purchased
                                                                                                                                                                                                (a) the purchase of the interest were a *frankable distribution equal to the one that would have arisen if the company had purchased the interest *off‑market; and
                                                                                                                                                                                                (b) the distribution were *franked at the entity's *benchmark franking percentage for the *franking period in which the purchase was made or, if the entity does not have a benchmark franking percentage for the period, at a *franking percentage of 100%

Note: For completeness, the table refers to some franking debits that arise under other sections of the Act. This does not mean that separate franking debits arise both under the relevant section and this table.

205‑35  Refund of income tax

 (1) An entity receives a refund of income tax if and only if:
 (a) either:
 (i) the entity receives an amount as a refund; or
 (ii) the Commissioner applies a credit, or an *RBA surplus, against a liability or liabilities of the entity; and
 (b) the refund of the amount, or the application of the credit, represents in whole or in part a return to the entity of an amount paid or applied to satisfy the entity's liability to pay income tax.

 (2) The amount of the refund is so much of the amount refunded or applied as represents the return referred to in paragraph (1)(b).

205‑40  Franking surplus and deficit

 (1) An entity's *franking account is in surplus at a particular time if, at that time, the sum of the *franking credits in the account exceeds the sum of the *franking debits in the account. The amount of the franking surplus is the amount of the excess.

 (2) An entity's *franking account is in deficit at a particular time if, at that time, the sum of the *franking debits in the account exceeds the sum of the *franking credits in the account. The amount of the franking deficit is the amount of the excess.

205‑45  Franking deficit tax

Object

 (1) While recognising that an entity may anticipate *franking credits when *franking *distributions, the object of this section is to prevent those credits from being anticipated indefinitely by requiring the entity to reconcile its *franking account at certain times and levying tax if the account is in *deficit.

Franking deficit at end of income year

 (2) An entity is liable to pay franking deficit tax imposed by the New Business Tax System (Franking Deficit Tax) Act 2002 if its *franking account is in *deficit at the end of an income year.

Corporate tax entity ceases to be a