Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p2
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 2/21)
Character Range: 354258–356763

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.

205‑70  Tax offset arising from franking deficit tax liabilities

General application rule
 (1) Section 205‑70 of the Income Tax Assessment Act 1997 has effect in relation to a corporate tax entity's assessments for the 2002‑2003 income year and later income years, except as provided in the following subsections.

Late balancing entities—2001‑2002 income year
 (2) If a corporate tax entity's 2001‑2002 income year ends after 30 June 2002, section 205‑70 of the Income Tax Assessment Act 1997 has effect in relation to the entity's assessment for that income year as if the following method statement had replaced the