Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_1:p4
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 4/20)
Character Range: 9197–12050

Residency requirement when making a distribution

[This is the end of the Guide.]

Operative provisions

202‑15  Franking entities

  An entity is a franking entity at a particular time if:
 (a) it is a *corporate tax entity at that time; and
 (b) it is not a *life insurance company that is a *mutual insurance company at that time; and
 (c) in a case where the entity is a *company that is a trustee of a trust—it is not acting in its capacity as trustee of the trust at that time.

202‑20  Residency requirement when making a distribution

  An entity satisfies the residency requirement when making a *distribution if:
 (a) in the case of a *company—the company is an *Australian resident at that time; and
 (b) in the case of a *corporate limited partnership—the corporate limited partnership is an Australian resident at that time; and
 (c) in the case of a *corporate unit trust—the corporate unit trust is a *resident unit trust for the income year in which that time occurs; and
 (d) in the case of a *public trading trust—the public trading trust is a resident unit trust for the income year in which that time occurs.

Subdivision 202‑C—Which distributions can be franked?

Guide to Subdivision 202‑C

202‑25  What this Subdivision is about

      Generally, distributions that are made out of realised profits can be franked.
      Those distributions that are not frankable are identified.

Table of sections

202‑30 Frankable distributions

Operative provisions

202‑35 Object
202‑40 Frankable distributions
202‑45 Unfrankable distributions

202‑30  Frankable distributions

  Distributions and non‑share dividends are frankable unless it is specified that they are unfrankable.

[This is the end of the Guide.]

Operative provisions

202‑35  Object

  The object of this Subdivision is to ensure that only distributions equivalent to realised taxed profits can be franked.

202‑40  Frankable distributions

 (1) A *distribution is a frankable distribution, to the extent that it is not unfrankable under section 202‑45.

 (2) A *non‑share dividend is a frankable distribution, to the extent that it is not unfrankable under section 202‑45.

202‑45  Unfrankable distributions

  The following are unfrankable:
 (a) a distribution by a co‑operative company as defined in section 117 of the Income Tax Assessment Act 1936 for which a deduction is allowable under section 120 of that Act;
 (b) a distribution to which paragraph 24J(2)(a) of that Act applies that is taken under section 24J of that Act to be derived from sources in a prescribed Territory, as defined in paragraph 24BB(a) of that Act (distributions by certain *corporate tax entities from sources in Norfolk Island);
 (c) where the purchase price on the buy‑back of a *share by a *company from one of its *members is taken to be a dividend under section 159GZZZP of