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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 205.10

Converting the franking account balance to a tax paid basis--companies whose 2001 - 02 franking year ends on 30 June 2002

  (1)   This section applies to companies whose 2001 - 02 franking year ends on 30   June 2002 under former Part   IIIAA of the Income Tax Assessment Act 1936 (the 1936 Act ).

  (2)   If the company has a franking surplus of a particular class under former Part   IIIAA of the 1936 Act at the end of 30   June 2002:

  (a)   no franking credit arises under former section   160APL of that Act because of the surplus; and

  (b)   a franking credit arises on 1   July 2002 in the franking account established under section   205 - 10 of the Income Tax Assessment Act 1997 (the 1997 Act ) for the company.

The amount of the franking credit is worked out under subsection   (3).

  (3)   The franking credit generated under paragraph   (2)(b) from a franking surplus of a class specified in column 2 of the following table is worked out using the formula in column 3 of the table for that class.

 

Conversion of 1936 Act franking surplus into 1997 Act franking credit

Item

Franking surplus

Franking credit generated under paragraph   (2)(b)

1

class A franking surplus

Start formula Amount of the class A franking surplus at the end of 30 June 2002 under the 1936 Act times start fraction 39 over 61 end fraction end formula

2

class B franking surplus

Start formula Amount of the class B franking surplus at the end of 30 June 2002 under the 1936 Act times start fraction 33 over 67 end fraction end formula

3

class C franking surplus

Start formula Amount of the class C franking surplus at the end of 30 June 2002 under the 1936 Act times start fraction 30 over 70 end fraction end formula


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