Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p33
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 33/34)
Character Range: 3607256–3610199

of a specified amount on the distribution.
 (2) An *exempting entity that makes a *frankable distribution to a *member must include in the *distribution statement given to the member, a statement to the effect that members who are Australian residents are not entitled to a *tax offset or *franking credit as a result of the distribution, except for certain *corporate tax entities, and employees who receive the distribution in connection with certain *employee share schemes.
 (3) If, under subsection (1) or (2), a statement must be included in a *distribution statement, the distribution statement is taken not to have been given unless the statement is included.

Subdivision 208‑E—Distributions to be franked with exempting credits to the same extent

Guide to Subdivision 208‑E

208‑85  What this Subdivision is about
      All frankable distributions made within a franking period must be franked to the same extent with an exempting credit.

Table of sections

Operative provisions
208‑90 All frankable distributions made within a franking period must be franked to the same extent with an exempting credit
208‑95 Exempting percentage
208‑100 Consequences of breaching the rule in section 208‑90

Operative provisions

208‑90  All frankable distributions made within a franking period must be franked to the same extent with an exempting credit
 (1) If an entity *franks a *distribution with an exempting credit, it must frank each other *frankable distribution made within the same *franking period with an exempting credit worked out at the same *exempting percentage.
 (2) If an entity is not a *former exempting entity for the whole of a *franking period (the longer period), then, for the purposes of subsection (1), each period within that longer period during which the entity is a former exempting entity is taken to be a franking period.

208‑95  Exempting percentage
  The exempting percentage for a *frankable distribution is worked out using the formula:

208‑100  Consequences of breaching the rule in section 208‑90
  If an entity *franks a *distribution with an exempting credit in breach of section 208‑90:
 (a) that distribution is taken not to have been franked with an exempting credit; and
 (b) each other *frankable distribution made by the entity within the relevant *franking period is taken not to have been franked with an exempting credit.

Subdivision 208‑F—Exempting accounts and franking accounts of exempting entities and former exempting entities

Guide to Subdivision 208‑F

208‑105  What this Subdivision is about

      This Subdivision:
         • creates an exempting account for each former exempting entity; and
         • identifies when exempting credits and debits arise in those accounts and the amount of those credits and debits; and
         • identifies when there is an exempting surplus or deficit in the account; and
         • identifies when franking credits and debits arise in the