Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:18_3:p2
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 18 cl 3 (pt 2/3)
Character Range: 256104–258776

not avoid franking deficit tax by deferring the time at which a franking debit occurs in its franking account.

End of year deficit deferred

 (2) If:
 (a) a corporate tax entity receives a refund of income tax within 3 months after 30 June in the year 2003 or a later year; and
 (b) the refund is attributable to a period of 12 months ending at the end of 30 June in that year; and
 (c) the franking account of the entity would have been in deficit, or in deficit to a greater extent, at the end of 30 June in that year if the refund had been received immediately before that time;
the refund is taken to have been paid to the entity immediately before that time.

Deficit on ceasing to be a franking entity deferred

 (3) If an entity ceases to be a franking entity during a period of 12 months ending on 30 June in the year 2003 or a later year, a refund of income tax is taken to have been paid to it immediately before it ceased to be a franking entity, for the purposes of subsection 205‑25(3), if:
 (a) the refund is attributable to a period within that 12 months during which the entity was a franking entity; and
 (b) the refund is paid within 3 months after the entity ceases to be a franking entity; and
 (c) the franking account of the entity would have been in deficit, or in deficit to a greater extent, immediately before it ceased to be a franking entity, if the refund had been received before it ceased to be a franking entity.

205‑35  No franking deficit tax if franking account in deficit at the close of the 2001‑02 income year of a late balancing entity

  If:
 (a) an entity's 2001‑02 income year ends after 30 June 2002; and
 (b) its franking account is in deficit at the end of that income year;
the entity is not liable to pay franking deficit tax under subsection 205‑45(2) of the Income Tax Assessment Act 1997 because the account is in deficit at that time.
Notes to the New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002

Note 1

The New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 as shown in this compilation comprises Act No. 117, 2002 amended as indicated in the Tables below.

Table of Acts
Act                                                                          Number     Date          Date of commencement                Application, saving or transitional provisions
                                                                             and year   of Assent
New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002  117, 2002  2 Dec 2002    See s. 2(1)
Tax Laws Amendment (2010 Measures No. 2) Act 2010                            75, 2010   28