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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 197.20

After introduction day, account taken to have become tainted under new Division 197 to extent of previous tainting

             (1)  Immediately after the introduction day, the company's share capital account is taken to become tainted under new Division 197 as if:

                     (a)  the company had, at that time, transferred an amount (the notionally transferred amount ) to its share capital account from another of its accounts that equalled the tainting amount (the old Division 7B tainting amount ), within the meaning of old Division 7B, in relation to the share capital account immediately before the old Division 7B close-off day; and

                     (b)  none of the exclusions in sections 197-10 to 197-40 of new Division 197 applied, to any extent, in relation to the notionally transferred amount.

             (2)  No franking debit arises under Subdivision 197-B of new Division 197 in relation to the notionally transferred amount.



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