Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_5:p2
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 2/2)
Character Range: 58080–60523

*PAYG instalment or income tax paid is equal to:
 (a) the amount of the liability, if it is satisfied in full; or
 (b) the amount by which the liability is reduced, if it is not satisfied in full.

 (6) If:
 (a) a surplus in an *RBA of an entity is applied to satisfy a liability of the entity to *pay a PAYG instalment in respect of an income year; and
 (b) a credit allowable under section 45‑30 in Schedule 1 to the Taxation Administration Act 1953 in respect of that income year is included in the RBA; and
 (c) the RBA does not include the liability to pay the *PAYG instalment; and
 (d) the amount of the credit exceeds the income tax assessed to the entity in respect of that income year;
the amount of the PAYG instalment paid by virtue of the application of the surplus is reduced by the amount of the excess mentioned in paragraph (d).

205‑25  Residency requirement for an event giving rise to a franking credit or franking debit

  An entity satisfies the residency requirement for an income year in which, or in relation to which, an event specified in the table in section 205‑15 or 205‑30 occurs if:
 (a) where the entity is a *company:
 (i) the company is an *Australian resident for more than one half of the year; or
 (ii) the company is an Australian resident at all times during the year when the company exists; or
 (b) where the entity is a *corporate limited partnership:
 (i) the corporate limited partnership is an Australian resident for more than one half of the year; or
 (ii) the corporate limited partnership is an Australian resident at all times during the year when the corporate limited partnership exists; or
 (c) the entity is a *corporate unit trust for the income year; or
 (d) the entity is a *public trading trust for the income year.

205‑30  Franking debits

  The following table sets out when a debit arises in the *franking account of an entity and the amount of the debit. The debit is called a franking debit.

Debits in the franking account
Item                            If:                                                                                                                                                             A debit of:                                                                                                                                                                                                                                                  Arises: