Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 365

             (1)  Each of the following is an attribution account payment:

                     (a)  a dividend paid by a company to a shareholder;

                     (b)  the individual interest of a partner in the net income (within the meaning of section 90) of a partnership of a year of income;

                     (c)  where a beneficiary of a trust is presently entitled to a share of the income of the trust--that share of the net income (within the meaning of section 95) of the trust of a year of income;

                     (d)  the whole or part of the net income of a trust of a year of income that is assessable to the trustee under section 99 or 99A;

                     (e)  an amount of trust property that would be included in the assessable income of a beneficiary of a year of income under section 99B if:

                              (i)  the beneficiary were a resident, within the meaning of section 6, at a time during the year of income; and

                             (ii)  paragraph 99B(2)(c) were replaced by a paragraph referring to any attribution account payment under paragraph (c) or (d) of this subsection.

             (2)  The attribution account payment is taken to be made:

                     (a)  in a paragraph (1)(b) case--by the partnership to the partner; and

                     (b)  in a paragraph (1)(c) or (e) case--by the trust to the beneficiary; and

                     (c)  in a paragraph (1)(d) case--by the trust to the trustee;

and, in any such case, to be made at the end of the year of income.

             (3)  Where:

                     (a)  an attribution credit arises for a company in relation to a taxpayer under paragraph 371(1)(b) as a result of a change of residence whereby the company becomes a Part X Australian resident; and

                     (b)  the company makes an attribution account payment consisting of a frankable distribution that has been franked in accordance with section 202‑5 of the Income Tax Assessment Act 1997 , or that has been franked with an exempting credit in accordance with section 208‑60 of that Act; and

                     (c)  immediately before the attribution account payment is made, there is an attribution surplus for the company in relation to the taxpayer that is attributable to the attribution credit;

then, for the purposes of applying section 23AI and Divisions 4 and 5 of this Part in relation to the taxpayer, the attribution account payment is taken to be reduced to the extent that it is franked.