Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p19
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 19/21)
Character Range: 394759–397363

to the Taxation Laws Amendment Act (No. 6) 2003 relating to Division 220 of the Income Tax Assessment Act 1997.

220‑5  Residency requirement for income year including 1 April 2003
  In determining whether an NZ franking company meets the residency requirement for the income year including 1 April 2003 regard may be had to things that happened in relation to the company before 1 April 2003.

220‑10  NZ franking company cannot frank before 1 October 2003
  An NZ franking company cannot:
 (a) frank a distribution made before 1 October 2003; or
 (b) frank with an exempting credit a distribution made before 1 October 2003.

220‑35  Extended time to make NZ franking choice
 (1) A company that is an NZ resident may make an NZ franking choice that comes into force at the start of the company's income year including 1 April 2003 by giving notice in the approved form to the Commissioner before the end of the next income year.
 (2) Subsection (1) has effect despite paragraph 220‑40(1)(a) of the Income Tax Assessment Act 1997.

220‑501  Franking and exempting accounts of new former exempting entities
 (1) This section has effect if:
 (a) a company (the Australian company) that is an Australian resident becomes a former exempting entity at a time (the switch time) because of:
 (i) an NZ franking choice by a company (the NZ company); and
 (ii) Division 220 of the Income Tax Assessment Act 1997; and
 (b) the NZ franking choice comes into force at the start of the NZ company's income year including 1 April 2003; and
 (c) at the switch time there is a franking surplus in the Australian company's franking account; and
 (d) at the switch time the Australian company is a 100% subsidiary of a company (the NZ parent company) that:
 (i) is not a 100% subsidiary of another company that is a member of the same wholly‑owned group; and
 (ii) is a post‑choice NZ franking company; and
 (e) there is a period for which all these requirements are met:
 (i) the period must start as soon as possible after 7.30 pm by legal time in the Australian Capital Territory on 13 May 1997 and end immediately before the switch time;
 (ii) the Australian company must have been a 100% subsidiary of the NZ parent company for the whole of the period;
 (iii) the Australian company must meet either or both of the conditions in subsections (2) and (3) for the whole of the period;
 (iv) the NZ parent company must meet the condition in subsection (4) for the whole of the period.

Conditions relating to the Australian company
 (2) One condition relating to the Australian company is that the company would not have