Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 197.45

A franking debit arises in relation to the transfer

             (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:

where:

"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

                     (b)  otherwise--100%.

"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



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