Document ID: chunk:federal_register_of_legislation:C2018C00085:clause:6_2:p5
Version: federal_register_of_legislation:C2018C00085
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 5/13)
Character Range: 93725–96615

the *tax offset to which the entity would be entitled under Subdivision 418‑B if:
 (a) the entity were not a *corporate tax entity; and
 (b) no other *exploration credits were issued to the entity during the income year.
 (3) The *franking credit arises at the same time the *exploration credit is issued.

418‑55  Exploration development incentive franking credit—life insurance company
 (1) A *franking credit arises in the *franking account of a *life insurance company if:
 (a) an *exploration credit is issued to the life insurance company under Subdivision 418‑E during an income year; and
 (b) paragraph 418‑15(1)(d) does not apply in relation to the exploration credit; and
 (c) if that paragraph were to apply in relation to the credit, the life insurance company would be entitled to a *tax offset under Subdivision 418‑B in relation to the exploration credit.
 (2) The amount of the *franking credit is the amount of the *tax offset to which the *life insurance company would be entitled under Subdivision 418‑B if no other *exploration credits were issued to the life insurance company during the income year.
 (3) The *franking credit arises at the same time the *exploration credit is issued.

Subdivision 418‑D—Creating exploration credits

Table of sections
418‑70 Entities that may create exploration credits
418‑75 Meaning of greenfields minerals explorer
418‑80 Meaning of greenfields minerals expenditure
418‑85 Exploration credits must not exceed maximum exploration credit amount
418‑90 Modulation factors
418‑95 Effect on tax losses of creating exploration credits

418‑70  Entities that may create exploration credits
 (1) An entity may create exploration credits for an income year if:
 (a) the entity was a *greenfields minerals explorer in the previous income year; and
 (b) on or before 30 September in the *financial year corresponding to the income year, the entity has given to the Commissioner, in the *approved form, a declaration stating:
 (i) their estimated *tax loss for the previous income year; and
 (ii) their estimated *greenfields minerals expenditure, for the previous income year.
 (2) However, the entity cannot create the exploration credits:
 (a) before the legislative instrument under section 418‑90 declaring the modulation factor for the income year has been registered under Division 2 of Part 4 of the Legislative Instruments Act 2003; or
 (b) for the 2018‑19 income year or a later income year.
 (3) A failure to comply with subsection (1) or paragraph (2)(a) does not invalidate the creation of an *exploration credit.
 (4) An *exploration credit is to be expressed as a monetary amount.
 (5) The entity cannot make more than one decision to create *exploration credits for an income year, and the decision is final and irrevocable.

418‑75  Meaning of greenfields minerals explorer
 (1) An entity is a greenfields minerals explorer in