Document ID: chunk:federal_register_of_legislation:C2010C00499:clause:7_2:p1
Version: federal_register_of_legislation:C2010C00499
Segment Type: clause
Provision Reference: sch 7 cl 2 (pt 1/3)
Character Range: 48913–51858

2                                        the company *receives a refund of income tax; and                                                                      that part of the refund that is attributable to:                                                   on the day on which the refund is received
                                         the company satisfies the *residency requirement for the income year to which the refund relates; and                  (a) the *shareholders' share of the income tax liability of the company for that income year; and
                                         the company was a *franking entity for the whole or part of that income year                                           (b) the period during which the company was a franking entity

Note 1: On the assessment day, a franking debit that arises under item 1 of this table reverses the effect of a franking credit that arose under item 1 of the table in section 219‑15.

Note 2: Section 219‑50 tells you how to work out the part of an amount that is attributable to the shareholders' share of the income tax liability of the company for the income year.

219‑40  Residency requirement

  The tables in sections 219‑15 and 219‑30 are relevant for the purposes of subsection 205‑25(1) (about the residency requirement).

219‑45  Assessment day

  A *life insurance company's assessment day for an income year is the earlier of:
 (a) the day on which the company furnishes its *income tax return for that income year; or
 (b) the day on which the Commissioner makes an assessment of the amount of the company's taxable income for that income year under section 166 of the Income Tax Assessment Act 1936.

219‑50  Amount attributable to shareholders' share of income tax liability

 (1) Subsection (2) applies to a *life insurance company in relation to the payment or refund mentioned in an item of a table in this Subdivision (except item 1 of the table in section 219‑15).

 (2) For the purposes of this Part, the part of the payment or refund that is attributable to the *shareholders' share of the income tax liability of the company for an income year must be worked out as follows:

      Method statement
           Step 1. Work out the part of the company's total income tax liability for the income year that is attributable to the company's shareholders.
            The result of this step is the shareholders' share of the income tax liability of the company for the income year.
           Step 2. Divide the step 1 result by that total income tax liability.
            The result of this step is the shareholders' ratio for the income year.
           Step 3. Multiply the amount of the payment or refund by the *shareholders' ratio.
            The result of this step is the part of the payment or refund that is attributable to the *shareholders' share of the income tax liability of the company for the income year.
 (3) For the