(1) The entity's conduit foreign income is reduced if:
(a) the entity (the receiving entity ) receives from another * Australian corporate tax entity a * frankable distribution that has an * unfranked part; and
(b) the * distribution statement for the * distribution declares an amount (the declared amount ) of the unfranked part to be conduit foreign income; and
(c) some or all of the declared amount is not * non-assessable non-exempt income under section 802-20.
(2) The amount of the reduction is the amount that is not * non-assessable non-exempt income under section 802-20 less any expenses reasonably related to that amount.