Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 202.45

Unfrankable distributions

                   The following are unfrankable :

                     (c)  where the purchase price on the buy-back of a * share by a * company from one of its * members is taken to be a dividend under section 159GZZZP of that Act--so much of that purchase price as exceeds what would be the market value (as normally understood) of the share at the time of the buy-back if the buy-back did not take place and were never proposed to take place;

                     (d)  a distribution in respect of a * non-equity share;

                     (e)  a distribution that is sourced, directly or indirectly, from a company's * share capital account;

                      (f)  an amount that is taken to be an unfrankable distribution under section 215-10 or 215-15;

                     (g)  an amount that is taken to be a dividend for any purpose under any of the following provisions:

                              (i)  unless subsection 109RB(6) or 109RC(2) applies in relation to the amount--Division 7A of Part III of that Act (distributions to entities connected with a * private company);

                            (iii)  section 109 of that Act (excessive payments to shareholders, directors and associates);

                            (iv)  section 47A of that Act (distribution benefits--CFCs);

                     (h)  an amount that is taken to be an unfranked dividend for any purpose:

                              (i)  under section 45 of that Act (streaming bonus shares and unfranked dividends);

                             (ii)  because of a determination of the Commissioner under section 45C of that Act (streaming dividends and capital benefits);

                      (i)  a * demerger dividend;

                      (j)  a distribution that section 152- 125 or 220- 105 says is unfrankable.



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