Document ID: chunk:federal_register_of_legislation:C2016C00523:clause:2_18:p2
Version: federal_register_of_legislation:C2016C00523
Segment Type: clause
Provision Reference: sch 2 cl 18 (pt 2/2)
Character Range: 43826–45387

credit (as P's share of the franking credit on the distribution is $30 under section 207‑57). Q's assessable income does not include any of the amount of the franked distribution or the franking credit.
 (5) Subsection (6) applies if:
 (a) a *franked distribution is made, or *flows indirectly, to the trustee of a trust in an income year; and
 (b) the assessable income of the trust for that year includes an amount (the franking credit amount) that is all or a part of the additional amount of assessable income included under subsection (1) in relation to the distribution; and
 (c) disregarding Division 6E of Part III of the Income Tax Assessment Act 1936, the trustee of the trust is liable to be assessed (and pay tax) in respect of an amount (the assessable amount) under section 98, 99 or 99A of that Act in relation to the trust.
 (6) Despite any provisions in Division 6 of Part III of the Income Tax Assessment Act 1936, for the purposes of that Division, increase the assessable amount by so much of the franking credit amount as is equal to:
 (a) if the trustee of the trust is liable to be assessed (and pay tax) under section 98 of that Act—the sum of:
 (i) the trustee's *share of the *franking credit on the distribution in respect of the beneficiary; and
 (ii) the amount mentioned in section 207‑37; or
 (b) if the trustee of the trust is liable to be assessed (and pay tax) under section 99 or 99A of that Act—the sum of:
 (i) the trustee's share of the franking credit on the distribution; and
 (ii) the amount mentioned in section 207‑37.