Commonwealth Consolidated Acts

CFM SALE ACT 1996 - SECT 59

  (1)   Subject to subsection   ( 3), if, immediately before CFM's sale day, CFM had a class A franking surplus, a class B franking surplus or a class C franking surplus, then CFM's class A franking surplus, class B franking surplus or class C franking surplus (as the case requires) is reduced to nil at the beginning of CFM's sale day.

  (2)   Subject to subsection   ( 3), if:

  (a)   at any time on or after CFM's sale day, there arises a franking credit or a franking debit of CFM; and

  (b)   the franking credit or franking debit is to any extent attributable to a period, or to an event taking place, before CFM's sale day;

the franking credit or franking debit is to that extent taken not to have arisen.

  (3)   If:

  (a)   a class A franking debit, class B franking debit or class C franking debit, that arises on or after CFM's sale day, of CFM is to an extent (the amount of which is the pre - sale component of the debit ) attributable to a period, or to an event taking place, before the sale day; and

  (b)   immediately before the sale day, CFM had a class A franking surplus, class B franking surplus or class C franking surplus, that was less than the corresponding pre - sale component of the debit;

then subsection   ( 1) does not apply to the surplus and subsection   ( 2) does not apply to the debit.

  (4)   In this section the following expressions have the same meanings as in Part   IIIAA of the Income Tax Assessment Act 1936 :