Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) * Tax offsets available under Division 207 (which sets out the effects of receiving a * franked distribution) or Subdivision 210 - H (which sets out the effects of receiving a * distribution * franked with a venture capital credit) are subject to the refundable tax offset rules, unless otherwise stated in this section.
(1A) Where the trustee of a * non - complying superannuation fund or a * non - complying approved deposit fund is entitled to a * tax offset under Division 207 because a * franked distribution is made to, or * flows indirectly to, the trustee, the tax offset is not subject to the refundable tax offset rules.
(a) the trustee of a trust to whom a * franked distribution * flows indirectly under subsection 207 - 50(4) is entitled to a * tax offset under Division 207 for an income year because of the distribution; and
(b) the trustee is liable to be assessed under section 98 or 99A of the Income Tax Assessment Act 1936 on a share of, or all or a part of, the trust's * net income for that income year;
the tax offset is not subject to the refundable tax offset rules.
(1C) Where a * corporate tax entity is entitled to a * tax offset under Division 207 because a * franked distribution is made to the entity, the tax offset is not subject to the refundable tax offset rules unless:
(a) the entity is an * exempt institution that is eligible for a refund; or
(b) the entity is a * life insurance company and the * membership interest on which the distribution was made was not held by the company on behalf of its shareholders at any time during the period:
(i) starting at the beginning of the income year of the company in which the distribution is made; and
(ii) ending when the distribution is made.
(1D) Where a * corporate tax entity is entitled to a * tax offset under Division 207 because a * franked distribution * flows indirectly to the entity, the tax offset is not subject to the refundable tax offset rules unless:
(a) the entity is an * exempt institution that is eligible for a refund; or
(b) the entity is a * life insurance company and the company's interest in the * membership interest on which the distribution was made was not held by the company on behalf of its shareholders at any time during the period:
(i) starting at the beginning of the income year of the company in which the distribution is made; and
(ii) ending when the distribution is made.
(1DA) A * tax offset is not subject to the refundable tax offset rules if:
(a) an entity is entitled to the tax offset under Division 207 because a * franked distribution is made, or * flows indirectly, to the entity; and
(b) the entity is a foreign resident and carries on business in Australia at or through a permanent establishment of the entity in Australia, being a permanent establishment within the meaning of:
(i) a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936 ) that relates to a foreign country and affects the entity; or
(ii) subsection 6(1) of that Act, if there is no such agreement; and
(c) the distribution is attributable to the permanent establishment.
(1E) Where a * corporate tax entity is entitled to a * tax offset under Subdivision 210 - H because a * distribution * franked with a venture capital credit is made to the entity, the tax offset is not subject to the refundable tax offset rules unless:
(a) the entity is a * life insurance company; and
(b) the * membership interest on which the distribution was made was not held by the company on behalf of its shareholders at any time during the period:
(i) starting at the beginning of the income year of the company in which the distribution is made; and
(ii) ending when the distribution is made.