Document ID: chunk:federal_register_of_legislation:C2010C00617:clause:5_160asem
Version: federal_register_of_legislation:C2010C00617
Segment Type: clause
Provision Reference: sch 5 cl 160ASEM
Character Range: 87004–88206

160ASEM  Requirement to empty the venture capital sub‑account when PDF has a venture capital sub‑account surplus

 (1) If a PDF:
 (a) pays dividends under a resolution under which the dividends are to be paid to all shareholders in the PDF; and
 (b) makes a declaration under subsection 160AQF(1AAA) in relation to the dividends; and
 (c) has a surplus in its venture capital sub‑account immediately before it makes the declaration;
the PDF must make a declaration under section 160ASEL so that:
 (d) the dividend is venture capital franked to the same extent to which it is class C franked; or
 (e) there is a nil surplus, or a deficit, in the sub‑account immediately after the declaration is made.

 (2) A venture capital debit of the PDF arises when a dividend is paid if the PDF does not venture capital frank the dividend to the extent required by subsection (1). The amount of the debit is:
where:

actual franked amount is the venture capital franked amount of the dividend.

subsection (1) franked amount is the amount that would have been the venture capital franked amount of the dividend if it had been franked in accordance with subsection (1).

Subdivision F—Venture capital deficit tax