Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_1:p17
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 17/20)
Character Range: 42673–45616

unable to make *frankable distributions.

204‑35  When does a franking debit arise if the Commissioner makes a determination under paragraph 204‑30(3)(a)

  If the Commissioner makes a determination giving rise to a *franking debit in the *franking account of an entity under paragraph 204‑30(3)(a), the debit arises in the franking account of the entity on the day on which the notice of determination is given to the entity in accordance with section 204‑50.

204‑40  Amount of the franking debit

 (1) The amount of the *franking debit arising because of a determination by the Commissioner under paragraph 204‑30(3)(a) must not exceed:
 (a) if the specified *distribution has been *franked—the difference between the amount of the *franking credit on the distribution and an amount worked out by multiplying the amount of the distribution by the highest *franking percentage at which a distribution to a favoured member is franked; or
 (b) if the specified distribution, although *frankable, has not been franked—an amount worked out by multiplying the amount of the distribution by the highest franking percentage at which a distribution to a favoured member is franked; or
 (c) if the specified distribution is *unfrankable—an amount worked out by multiplying the amount of the distribution by the highest franking percentage at which a distribution to a favoured member is franked; or
 (d) if the specified benefit is the issue of bonus shares from a share premium account—an amount worked out by multiplying the amount debited to the share premium account in respect of the bonus shares by the highest franking percentage at which a distribution to a favoured member is franked; or
 (e) if some other benefit is specified—an amount worked out by multiplying the value of the benefit by the highest franking percentage at which a distribution to a favoured member is franked.

 (2) In specifying the *franking debit, the Commissioner must have regard to:
 (a) any *franking debit already arising in the *franking account of the entity under paragraph 203‑50(1)(b) because the entity franked the specified *distribution in breach of the *benchmark rule; and
 (b) any franking debit already arising in the franking account of the entity, because of the specified distribution or benefit, under section 204‑15 (about linked distributions) or section 204‑25 (about substituting *tax‑exempt bonus shares for *franked distributions).

204‑45  Effect of a determination under paragraph 204‑30(3)(b)

  If the Commissioner makes a determination denying an *imputation benefit under paragraph 204‑30(3)(b), the determination has effect according to its terms.

204‑50  Assessment and notice of determination

 (1) A determination under subsection 204‑30(3) does not form part of an assessment.

 (2) The Commissioner must give notice in writing of the determination:
 (a) in a case where the Commissioner determines that a *franking debit is