Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:13_15:p8
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 13 cl 15 (pt 8/11)
Character Range: 126829–129762

or more persons who are not prescribed persons.

208‑50  Former exempting companies
 (1) Subject to subsection (2), a *corporate tax entity is a former exempting entity if it has, at any time, ceased to be an *exempting entity and is not again an exempting entity.
 (2) If an entity that, at any time, becomes effectively owned by prescribed persons ceases to be so effectively owned within 12 months after that time, the entity is not taken, by so ceasing, to become a former exempting entity.

Subdivision 208‑B—Franking with an exempting credit

Guide to Subdivision 208‑B

208‑55  What this Subdivision is about
      If a former exempting entity makes a distribution in circumstances where it could be franked, the entity can frank the distribution with an exempting credit.

Table of sections

Operative provisions
208‑60 Franking with an exempting credit
[This is the end of the Guide.]

Operative provisions

208‑60  Franking with an exempting credit
  An entity franks a *distribution with an exempting credit if:
 (a) the entity is a *former exempting entity when the distribution is made; and
 (b) the entity is a *franking entity that satisfies the *residency requirement when the distribution is made; and
 (c) the distribution is a *frankable distribution; and
 (d) the entity allocates an *exempting credit to the distribution.
Note: The residency requirement for an entity making a distribution is set out in section 202‑20.

Subdivision 208‑C—Amount of the exempting credit on a distribution

Guide to Subdivision 208‑C

208‑65  What this Subdivision is about
      The amount of the exempting credit on a distribution is that stated in the distribution statement, unless the amount stated exceeds the maximum franking credit for the distribution. In that case, it is nil.

Table of sections

Operative provisions
208‑70 Amount of the exempting credit on a distribution
[This is the end of the Guide.]

Operative provisions

208‑70  Amount of the exempting credit on a distribution
 (1) Subject to subsection (2), the amount of the *exempting credit on a *distribution is that stated in the *distribution statement for the distribution.
 (2) If the sum of the *franking credit and the *exempting credit stated in the *distribution statement for a *distribution exceeds the *maximum franking credit for the distribution, the amount of the exempting credit on the distribution is taken to be nil.
Note: If the franking credit stated in the distribution statement exceeds the maximum franking credit for the distribution, the amount of the franking credit on the distribution is taken to equal that maximum under section 202‑65.

Subdivision 208‑D—Distribution statements

Guide to Subdivision 208‑D

208‑75  Guide to Subdivision 208‑D
      Former exempting entities and exempting entities that make certain distributions must provide additional information in the distribution statement given to the recipient.

Table