Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 3/13)
Character Range: 3656565–3659320

that no *imputation benefit is to arise for the entity in respect of the distribution; or
 (b) the Commissioner has made a determination under paragraph 177EA(5)(b) of the Income Tax Assessment Act 1936 that no franking credit benefit (within the meaning of that section) is to arise in respect of the distribution to the entity; or
 (c) the distribution is part of a *dividend stripping operation.

208‑165  Amount of the exempting credit or franking credit arising because of a distribution franked with an exempting credit
 (1) Use the following formula to work out:
 (a) the amount of an *exempting credit arising under item 2 of the table in section 208‑115 because a *former exempting entity receives a *distribution *franked with an exempting credit; or
 (b) the amount of a *franking credit arising under item 2 of the table in section 208‑130 because an *exempting entity receives a distribution franked with an exempting credit;
 (2) Use the following formula to work out the amount of a *franking credit arising under item 5 of the table in section 208‑130 because an *exempting entity receives a *distribution *franked with an exempting credit:

208‑170  Where a determination under paragraph 177EA(5)(b) of the Income Tax Assessment Act 1936 affects part of the distribution
 (1) Use the following formula to work out:
 (a) the amount of an *exempting credit arising under item 3 of the table in section 208‑115 because a *former exempting entity receives a *distribution *franked with an exempting credit; or
 (b) the amount of a *franking credit arising under item 3 of the table in section 208‑130 because an *exempting entity receives a distribution franked with an exempting credit;

 (2) Use the following formula to work out the amount of a *franking credit arising under item 6 of the table in section 208‑130 because an *exempting entity receives *a distribution *franked with an exempting credit:

208‑175  When does a distribution franked with an exempting credit flow indirectly to an entity?
  A *distribution *franked with an exempting credit is taken to flow indirectly to an entity if, had it been a *franked distribution, it would have been taken to have flowed indirectly to the entity under section 207‑50.

208‑180  What is an entity's share of the exempting credit on a distribution?
  To work out an entity's share of the *exempting credit on a *distribution *franked with that credit, use sections 207‑55 and 207‑57 to work out what the entity's share of the credit would be it if were a *franking credit on a *franked distribution. The entity's share of the exempting credit is equal to that amount.

208‑185  Minister may convert exempting surplus to franking credit of former exempting entity previously owned by the