(1) A * franking debit arises in a company's * franking account if an amount (the transferred amount ) to which this Division applies is transferred to the company's * share capital account. The debit arises immediately before the end of the * franking period in which the transfer of the amount occurs.
(2) The amount of the * franking debit is calculated in accordance with the formula:
"applicable franking percentage" means:
(a) if, before the debit arises, the * benchmark franking percentage for the * franking period in which the transfer of the amount occurs has already been set by section 203-30--that percentage; or
"applicable gross-up rate" means the company's * corporate tax gross-up rate for the income year in which the franking debit arises.
Table of sections
197-50 The share capital account becomes tainted (if it is not already tainted)
197-55 Choosing to untaint a tainted share capital account
197-60 Choosing to untaint--liability to untainting tax
197-65 Choosing to untaint--further franking debits may arise
197-70 Due date for payment of untainting tax
197-75 General interest charge for late payment of untainting tax
197-80 Notice of liability to pay untainting tax
197-85 Evidentiary effect of notice of liability to pay untainting tax