Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 215.15

  (1)   If:

  (a)   a * corporate tax entity pays a * non - share dividend; and

  (b)   immediately before the payment, the amount of the * available frankable profits of the entity is nil, or less than nil;

the non - share dividend is unfrankable .

  (2)   If:

  (a)   a * corporate tax entity pays a * non - share dividend that is not one of a number of non - share dividends paid at the same time; and

  (b)   immediately before the payment, the amount of the * available frankable profits of the entity, although greater than nil, are less than the amount of the non - share dividend;

the entity is taken to have made a frankable distribution equal to the amount of the available frankable profits. The remainder of the dividend is taken to be an unfrankable distribution.

  (3)   If:

  (a)   a * corporate tax entity pays a * non - share dividend that is one of a number paid at the same time; and

  (b)   immediately before the payment, the amount of the * available frankable profits of the entity, although greater than nil are less than the sum of the amounts of the non - share dividends;

the entity is taken to have made a frankable distribution equal to the amount worked out using the formula:

The remainder of the dividend is taken to be an unfrankable distribution.