Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:17_4:p2
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 17 cl 4 (pt 2/4)
Character Range: 242820–245552

in Australia;
  if the funds are contributed, before the relevant interest is issued, for use in the business of the ADI carried on at or through the permanent establishment.

215‑15  Non‑share dividends are unfrankable if profits are unavailable

 (1) If:
 (a) a *corporate tax entity pays a *non‑share dividend; and
 (b) immediately before the payment, the amount of the *available frankable profits of the entity is nil, or less than nil;
the non‑share dividend is unfrankable.

 (2) If:
 (a) a *corporate tax entity pays a *non‑share dividend that is not one of a number of non‑share dividends paid at the same time; and
 (b) immediately before the payment, the amount of the *available frankable profits of the entity, although greater than nil, are less than the amount of the non‑share dividend;
the entity is taken to have made a frankable distribution equal to the amount of the available frankable profits. The remainder of the dividend is taken to be an unfrankable distribution.

 (3) If:
 (a) a *corporate tax entity pays a *non‑share dividend that is one of a number paid at the same time; and
 (b) immediately before the payment, the amount of the *available frankable profits of the entity, although greater than nil are less than the sum of the amounts of the non‑share dividends;
the entity is taken to have made a frankable distribution equal to the amount worked out using the formula:
The remainder of the dividend is taken to be an unfrankable distribution.

215‑20  Working out the available frankable profits

 (1) Use the following formula to work out the amount of a *corporate tax entity's available frankable profits at a particular time:
where:

committed share dividends means the sum of:
 (a) the amounts of any *distributions that are not *non‑share dividends and are paid by the entity at that time; and
 (b) if the entity has announced that it will pay distributions that are not non‑share dividends at a later time, or is committed or has resolved (formally or informally) to paying such distributions at a later time—the amounts of those distributions.

maximum frankable amount means the maximum amount of *frankable *distributions (other than *non‑share dividends) that the *corporate tax entity could pay at that time having regard to its available profits at that time.

undebited non‑share dividends means the sum of the amounts of the franked parts of the *non‑share dividends (worked out under subsection (2)) that:
 (a) were not debited to available profits; and
 (b) were paid within the preceding 2 income years or were paid under the same scheme under which the entity pays the non‑share dividend.

 (2) The amount of the franked part of a *non‑share dividend is worked out using the