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TAXATION LAWS AMENDMENT ACT (NO. 8) 2003 NO. 107, 2003 - SCHEDULE 1

- Franking of non-share dividends Part 1—Amendment of the Income Tax Assessment Act 1997

1 Subsection 215-25(1)

Omit all the words after paragraph (d), substitute:

; and (e) it is reasonable to expect that, having regard to the available profits mentioned in paragraph (d), the amount of the entity's * adjusted available frankable profits immediately after each of the committed distributions is paid will be greater than nil.

The available frankable profits immediately before the entity pays the non-share dividend is then the smallest of the amounts of the adjusted available frankable profits mentioned in paragraph (e).

2 Subsection 215-25(2)

Repeal the subsection, substitute:

(2) The entity's adjusted available frankable profits immediately after a committed distribution is paid is the amount that would be its * available frankable profits at that time if all committed distributions to be paid after that time, and the * non-share dividend, were ignored.
3 Subparagraph 215-25(3)(b)(i)

Omit "when", substitute "immediately after".

4 Subsection 995-1(1)

Insert:

adjusted available frankable profits has the meaning given by subsection 215-25(2).

5 Subsection 160APAAAB(6)

Omit all the words after paragraph (d), substitute:

; and (e) it is reasonable to expect that, having regard to the profits mentioned in paragraph (d), the amount of the company's adjusted available frankable profits (see subsection (12A)) immediately after each of the committed share dividends is paid will be greater than nil.

The available frankable profits immediately before the company pays the non-share dividend is then the smallest of the amounts of the adjusted available frankable profits mentioned in paragraph (e).

6 Subsection 160APAAAB(7)

Repeal the subsection.

7 Subparagraph 160APAAAB(8)(b)(i)

Omit "when", substitute "immediately after".

8 After subsection 160APAAAB(12)

Insert:

(12A) A company's adjusted available frankable profits immediately after a committed share dividend is paid is the amount that would be its available frankable profits at that time if all committed share dividends to be paid after that time, and the non-share dividend, were ignored.

9 Application

(1) The amendments made by Part 1 of this Schedule apply to non-share dividends paid after 30 June 2002.
(2) The amendments made by Part 2 of this Schedule apply to non-share dividends paid after 30 June 2001 and before 1 July 2002.


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