Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The object of this section is to ensure that an entity does not avoid * franking deficit tax by deferring the time at which a * franking debit occurs in its * franking account.
(2) An entity is taken to have * received a refund of income tax for an income year immediately before the end of that year for the purposes of subsection 205 - 45(2) if:
(a) the refund is paid within 3 months after the end of that year; and
(b) the * franking account of the entity would have been in * deficit, or in deficit to a greater extent, at the end of that year if the refund had been received in that year.
Deficit on ceasing to be a franking entity deferred
(3) If an entity ceases to be a * franking entity during an income year, the entity is taken to have * received a refund of income tax immediately before it ceased to be a franking entity for the purposes of subsection 205 - 45(3) if:
(a) the refund is attributable to a period in the year during which the entity was a franking entity; and
(b) the refund is paid within 3 months after the entity ceases to be a franking entity; and
(c) the * franking account of the entity would have been in *
deficit, or in deficit to a greater extent, immediately before it ceased to be
a franking entity if the refund had been received before it ceased to be a
franking entity.