INCOME TAX ASSESSMENT ACT 1997 - SECT 202.5 Franking a distribution

INCOME TAX ASSESSMENT ACT 1997 - SECT 202.5

    An entity franks a * distribution if:

  (a)   the entity is a * franking entity that satisfies the * residency requirement when the distribution is made; and

  (b)   the distribution is a * frankable distribution; and

  (c)   the entity allocates a * franking credit to the distribution.

Note 1:   Division   205 deals with a corporate tax entity's franking account and sets out when credits, known as franking credits, and debits, known as franking debits, arise in that account.

Note 2:   The mechanism by which an entity allocates a franking credit to a distribution (for example, whether it is done by resolution or some other means) is determined by the entity.