Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:10_1:p10
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 10 cl 1 (pt 10/13)
Character Range: 74657–77272

nil if the amount of the supplementary dividend is greater than the amount of the franking credit on the franked distribution.

Reduction of amount on which trustee recipient is assessed

 (5) If the recipient:
 (a) is the trustee of a trust; and
 (b) is liable under section 98, 99 or 99A of the Income Tax Assessment Act 1936 to be assessed on a share of the *net income, the net income or a part of the net income, of the trust;
the amount on which the recipient is liable to be assessed is reduced by the amount worked out using the formula:

Tax offset if recipient is trustee who is assessed

 (6) Despite subsection (4), work out the amount of the recipient's *tax offset using the formula if the recipient:
 (a) is the trustee of a trust; and
 (b) is liable under section 98, 99 or 99A of the Income Tax Assessment Act 1936 to be assessed on a share of the *net income, the net income or a part of the net income, of the trust;
However, the amount of the tax offset is nil if the amount of the supplementary dividend is greater than the amount of the franking credit on the franked distribution.

Amount of tax offset in case of manipulation

 (7) If paragraph 207‑150(2)(b) applies in relation to the recipient as the entity mentioned in that paragraph, it has effect as if the amount of the entity's *share of the *franking credit on the distribution were equal to the amount of the *tax offset worked out for the recipient under this section.

Note: Paragraph 207‑150(2)(b) reduces the amount of a tax offset an entity is entitled to under section 207‑50 for a franked distribution flowing indirectly to the entity if the Commissioner determines that no franking credit benefit is to arise for part of the distribution.

Relationship with Subdivisions 207‑B and 207‑F

 (8) Subdivisions 207‑B and 207‑F have effect subject to this section.

Note: Subdivision 207‑B provides for an entitlement to a tax offset for a franked distribution flowing indirectly to an entity. Subdivision 207‑F provides for reducing the amount of the offset if the Commissioner determines that no franking credit benefit is to arise for part of the distribution.

220‑410  Franking credit reduced if tax offset reduced

 (1) If, under section 220‑400 or 220‑405, a *corporate tax entity's *tax offset (the reduced tax offset) for the *franked distribution described in that section is less than it would be apart from that section, the *franking credit arising in that entity's *franking account because of the *distribution is equal to the reduced tax offset.

 (2) Items 3 and 4 of the table in section 205‑15 have effect