Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 207.90

Whole of distribution not assessable

  (1)   If:

  (a)   a * franked distribution is made to an entity; and

  (b)   the distribution does not * flow indirectly through the entity to another entity; and

  (c)   the distribution is * exempt income or * non - assessable non - exempt income in the hands of the entity;

then, for the purposes of this Act:

  (d)   the amount of the * franking credit on the distribution is not included in the assessable income of the entity under section   207 - 20; and

  (e)   the entity is not entitled to a * tax offset under this Division because of the distribution.

Part of distribution not assessable

  (2)   If:

  (a)   a * franked distribution is made to an entity; and

  (b)   the distribution does not * flow indirectly through the entity to another entity; and

  (c)   a part of the distribution (the relevant part ) is * exempt income or * non - assessable non - exempt income in the hands of the entity;

then, for the purposes of this Act:

  (d)   the amount of the distribution is taken to have been reduced by the relevant part; and

  (e)   the amount of the * franking credit on the distribution is to be worked out as follows: