Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 202.45

    The following are unfrankable :

  (c)   where the purchase price on the buy - back of a * share by a * company from one of its * members is taken to be a dividend under section   159GZZZP of the Income Tax Assessment Act 1936 --so much of that purchase price as exceeds what would be the market value (as normally understood) of the share at the time of the buy - back if the buy - back did not take place and were never proposed to take place;

  (d)   a * distribution in respect of a * non - equity share;

  (e)   a distribution that is sourced, directly or indirectly, from a company's * share capital account;

  (ea)   a distribution or a part of a distribution to which subsection   207 - 159(1) of this Act applies (distributions funded by capital raising);

  (f)   an amount that is taken to be an unfrankable distribution under section   215 - 10 or 215 - 15 of this Act;

  (g)   an amount that is taken to be a dividend for any purpose under any of the following provisions:

  (i)   unless subsection   109RB(6) or 109RC(2) of the Income Tax Assessment Act 1936 applies in relation to the amount--Division   7A of Part   III of that Act (distributions to entities connected with a * private company);

  (iii)   section   109 of that Act (excessive payments to shareholders, directors and associates);

  (iv)   section   47A of that Act (distribution benefits--CFCs);

  (h)   an amount that is taken to be an unfranked dividend for any purpose:

  (i)   under section   45 of the Income Tax Assessment Act 1936 (streaming bonus shares and unfranked dividends);

  (ii)   because of a determination of the Commissioner under section   45C of that Act (streaming dividends and capital benefits);

  (i)   a * demerger dividend;

  (j)   a distribution that section   152 - 125 or 220 - 105 of this Act says is unfrankable;

  (k)   a distribution by a * listed public company that is consideration for the cancellation of a * membership interest in the company as part of a selective reduction of capital, including a selective reduction within the meaning of section   256B of the Corporations Act 2001 .