• Specific Year
    Any

INCOME TAX ASSESSMENT ACT 1997 - SECT 200.35 Effect of receiving a franked distribution

INCOME TAX ASSESSMENT ACT 1997 - SECT 200.35

Effect of receiving a franked distribution

  (1)   Under Division   207, if an Australian member of a corporate tax entity receives a franked distribution, the member can usually offset, against the member's own income tax liability, income tax paid by the entity on the profits underlying the distribution.

  (2)   The tax offset to which the member is entitled is equal to the franking credit on the distribution.

Note 1:   A member may be entitled to a refund under Division   67 if the sum of the tax offset and certain other tax offsets exceeds the amount of income tax that the member would have to pay if the member had not got those tax offsets.

Note 2:   If the member is not a resident, the tax effects of receiving a distribution will be dealt with under Division   11A of Part   III of the Income Tax Assessment Act 1936 , and Subdivision   207 - D of this Part.

Download

No downloadable files available