Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 200.5

    The * imputation system partially integrates the income tax liabilities of an Australian corporate tax entity and its members by:

  (a)   allowing the entity, when distributing profits to its members, to pass to those members credit for income tax paid by the entity on those profits; and

  (b)   allowing the entity's Australian members to claim a tax offset for that credit; and

  (c)   allowing the entity's Australian members to claim a refund if they are unable to fully utilise the tax offset in reducing their income tax.