Document ID: chunk:federal_register_of_legislation:C2010C00300:clause:5_1
Version: federal_register_of_legislation:C2010C00300
Segment Type: clause
Provision Reference: sch 5 cl 1
Character Range: 22506–23420

1  Subsection 205‑70(2) (method statement, steps 1 and 2)
Repeal the steps, substitute:

           Step 1. Work out the total amount of *franking deficit tax that is covered by paragraph (1)(a).
            Then, subject to subsections (5) and (6), reduce so much of it as is attributable to *franking debits to which subsection (8) applies by 30% if that part exceeds 10% of the total amount of *franking credits that arose in the entity's *franking account for the relevant year.
           Step 2. Work out the total amount of *franking deficit tax that is covered by paragraph (1)(b) for a previous income year.
            Then, subject to subsections (5) and (6), reduce so much of it as is attributable to *franking debits to which subsection (8) applies by 30% if that part exceeds 10% of the total amount of *franking credits that arose in the entity's *franking account for that previous income year.