Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 208.15

    To ensure that franking credits accumulated by an exempting entity are not the target of franking credit trading, these rules:

  (a)   limit the circumstances in which a distribution franked with those credits can give rise to benefits under the imputation system; and

  (b)   quarantine those credits by moving them into a separate account, called the exempting account, when the entity ceases to be an exempting entity; and

  (c)   deny a recipient of a distribution franked with a credit from that account any benefit under the imputation system as a result of that distribution, unless the recipient was a member of the entity immediately before it became a former exempting entity.

Table of sections

208 - 20   Exempting entities

208 - 25   Effective ownership of entity by prescribed persons

208 - 30   Accountable membership interests

208 - 35   Accountable partial interests

208 - 40   Prescribed persons

208 - 45   Persons who are taken to be prescribed persons

208 - 50   Former exempting companies