Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 365

  (1)   Each of the following is an attribution account payment:

  (a)   a dividend paid by a company to a shareholder;

  (b)   the individual interest of a partner in the net income (within the meaning of section   90) of a partnership of a year of income;

  (c)   where a beneficiary of a trust is presently entitled to a share of the income of the trust--that share of the net income (within the meaning of section   95) of the trust of a year of income;

  (ca)   where a beneficiary of a trust is specifically entitled to an amount of a capital gain or a franked distribution of the trust for a year of income:

  (i)   in the case of a capital gain--the amount mentioned in subsection   115 - 225(1) in respect of the beneficiary; or

  (ii)   in the case of a franked distribution--the amount mentioned in subsection   207 - 37(1) in respect of the beneficiary;

    to the extent that it is not covered under paragraph   (c);

  (d)   the whole or part of the net income of a trust of a year of income that is assessable to the trustee under section   99 or 99A;

  (e)   an amount of trust property that would be included in the assessable income of a beneficiary of a year of income under section   99B if:

  (i)   the beneficiary were a resident, within the meaning of section   6, at a time during the year of income; and

  (ii)   paragraph   99B(2)(c) were replaced by a paragraph referring to any attribution account payment under paragraph   (c) or (d) of this subsection.

  (2)   The attribution account payment is taken to be made:

  (a)   in a paragraph   (1)(b) case--by the partnership to the partner; and

  (b)   in a paragraph   (1)(c) or (e) case--by the trust to the beneficiary; and

  (c)   in a paragraph   (1)(d) case--by the trust to the trustee;

and, in any such case, to be made at the end of the year of income.

  (3)   Where:

  (a)   an attribution credit arises for a company in relation to a taxpayer under paragraph   371(1)(b) as a result of a change of residence whereby the company becomes a Part   X Australian resident; and

  (b)   the company makes an attribution account payment consisting of a frankable distribution that has been franked in accordance with section   202 - 5 of the Income Tax Assessment Act 1997 , or that has been franked with an exempting credit in accordance with section   208 - 60 of that Act; and

  (c)   immediately before the attribution account payment is made, there is an attribution surplus for the company in relation to the taxpayer that is attributable to the attribution credit;

then, for the purposes of applying section   23AI and Divisions   4 and 5 of this Part   in relation to the taxpayer, the attribution account payment is taken to be reduced to the extent that it is franked.