(1) This section applies if:
(a) a franking debit arose before 1 July 2002 in the franking account of a life insurance company under former section 160AQCNCE of the Income Tax Assessment Act 1936 in relation to a PAYG instalment variation credit in respect of an income year; and
(b) the company's assessment day (the assessment day ) for that income year occurs on or after 1 July 2002; and
(c) the company has a franking account (the new franking account ) under section 205-10 of the Income Tax Assessment Act 1997 .
(2) A franking credit of the amount worked out in accordance with the following formula is taken to have arisen in the new franking account on 1 July 2002:
amount of the 1936 Act debit means the amount of the franking debit mentioned in paragraph (1)(a).
Note: As the effects of former sections 160AQCNCE and 160APVN of the Income Tax Assessment Act 1936 are not duplicated in the Income Tax Assessment Act 1997 , this section ensures that a debit arising under former section 160AQCNCE before 1 July 2002 is reversed on a tax paid basis on that date if it has not been reversed under former section 160APVN before that date.
Table of sections
220-1 Application to things happening on or after 1 April 2003
220-5 Residency requirement for income year including 1 April 2003
220-10 NZ franking company cannot frank before 1 October 2003
220-35 Extended time to make NZ franking choice
220-501 Franking and exempting accounts of new former exempting entities