Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p58
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 58/64)
Character Range: 3447175–3449756

paragraph (3)(a) by specifying the *franking percentage to be used in working out the amount of the debit; and
 (b) specify the *exempting debit under paragraph (3)(b) by specifying the *exempting percentage to be used in working out the amount of the debit.
 (5) The Commissioner may specify the *distribution under paragraph (3)(a), (b) or (c) by specifying:
 (a) the date on which the distribution was made, or the period during which the distribution was made; and
 (b) the member, or class of members, to whom the distribution was made.

What is an imputation benefit?
 (6) A *member of an entity receives an imputation benefit as a result of a distribution if:
 (a) the member is entitled to a *tax offset under Division 207 as a result of the distribution; or
 (b) an amount would be included in the member's assessable income as a result of the distribution because of the operation of section 207‑35; or
 (c) a *franking credit would arise in the *franking account of the member as a result of the distribution; or
 (d) an *exempting credit would arise in the *exempting account of the member as a result of the distribution; or
 (e) the member would not be liable to pay *withholding tax on the distribution, because of the operation of paragraph 128B(3)(ga) of the Income Tax Assessment Act 1936; or
 (f) the member is entitled to a *tax offset under section 210‑170 as a result of the distribution.

When does a favoured member derive greater benefit from franking credits?
 (7) The following subsection lists some of the cases in which a *member of an entity *derives a greater benefit from franking credits than another member of the entity. It is not an exhaustive list.
 (8) A *member of an entity *derives a greater benefit from franking credits than another member of the entity if any of the following circumstances exist in relation to the other member in the income year in which the distribution giving rise to the benefit is made, and not in relation to the first member:
 (a) the other member is a foreign resident;
 (b) the other member would not be entitled to any *tax offset under Division 207 because of the distribution;
 (c) the amount of income tax that, apart from this Division, would be payable by the other member because of the distribution is less than the tax offset to which the other member would be entitled;
 (d) the other member is a *corporate tax entity at the time the distribution is made, but no *franking credit arises for the entity as a result of the distribution;
 (e) the other member is a *corporate tax entity at the time the