Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The table in section 205 - 30 (except items 2 and 2A) applies to a * life insurance company in the same way as it applies to any other company.
(2) The following table sets out when a * franking debit arises under this section in the * franking account of a * life insurance company.
Franking debits in the franking account | |||
Item | If: | A debit of: | Arises: |
1 | a * franking credit arises for the company under item 1 of the table in section 219 - 15 ( * payment of a PAYG instalment) | the amount of the franking credit | on the company's * assessment day for the income year mentioned in that item |
2 | the company * receives a refund of income tax; and the company satisfies the * residency requirement for the income year to which the refund relates; and the company was a * franking entity for the whole or part of that income year | that part of the refund that is attributable to: (a) the * shareholders' share of the * income tax liability of the company for that income year; and (b) the period during which the company was a franking entity | on the day on which the refund is received |
3 | the company * receives a * tax offset refund; and the company does not satisfy the * residency requirement for the income year to which the refund relates; and the company was a * franking entity for the whole or part of that income year; and the company's * franking account is in * surplus on the day on which the refund is received | the lesser of: (a) that part of the refund that is attributable to: (i) the * shareholders' share of the * income tax liability of the company for that income year; and (ii) the period during which the company was a franking entity; and (b) the amount of the * franking surplus | on the day on which the refund is received |
4 | the company * receives a refund of diverted profits tax; and the company satisfies the * residency requirement for the income year to which the refund relates; and the company was a * franking entity for the whole or part of that income year | that part of the refund that is attributable to: (a) the * shareholders' share of the * income tax liability of the company for that income year; and (b) the period during which the company was a franking entity; multiplied by the proportion worked out under subsection (3) | on the day on which the refund is received |
Note 1: On the assessment day, a franking debit that arises under item 1 of this table reverses the effect of a franking credit that arose under item 1 of the table in section 219 - 15.
Note 2: Section 219 - 50 tells you how to work out the part of an amount that is attributable to the shareholders' share of the income tax liability of the company for the income year.
(3) The proportion is the standard corporate tax rate (within the meaning of Part IVA of the Income Tax Assessment Act 1936 ) divided by 40%.