Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 202.85

Changing the franking credit on a specified distribution

             (1)  The Commissioner may, on application by an entity, determine in writing that the entity may change the * franking credit on a specified * distribution by amending the * distribution statement for the distribution.

             (2)  In deciding whether to make a determination under subsection (1), the Commissioner must have regard to:

                     (a)  whether the date for lodgment of an * income tax return by the recipient of the specified * distribution for the income year in which the distribution was made has passed; and

                     (b)  whether, if the * franking credit on the specified distribution were changed in accordance with the entity's application, there would be any difference in the * withholding tax liability of the recipient; and

                     (c)  whether amending the distribution statement as requested by the entity would lead to a breach of the * benchmark rule, or any of the rules in Division 204 (the anti-streaming rules); and

                     (d)  whether amending the distribution statement as requested by the entity would lead to a new * benchmark franking percentage being set for the entity for the * franking period in which the distribution was made; and

                     (e)  any other matters that the Commissioner considers relevant.

Changing the franking credits on a specified class of distributions

             (3)  The Commissioner may, on application by an entity, determine in writing that the entity may change the * franking credits on * distributions of a specified class by amending the * distribution statements for the distributions.

             (4)  In deciding whether to make a determination under subsection (3), the Commissioner must have regard to:

                     (a)  the number of recipients to whom an amended * distribution statement would be made; and

                     (b)  whether the date for lodgment of * income tax returns by recipients of * distributions of the specified class for the income year in which the distributions were made has passed; and

                     (c)  whether, if the * franking credit on the specified distributions were changed in accordance with the entity's application, there would be any difference in the * withholding tax liability of the recipients; and

                     (d)  whether amending the distribution statements as requested by the entity would lead to a breach of the * benchmark rule, or any of the rules in Division 204 (the anti-streaming rules); and

                     (e)  whether amending the distribution statements as requested by the entity would lead to a new * benchmark franking percentage being set for the entity for the * franking period in which the distributions were made; and

                      (f)  any other matters that the Commissioner considers relevant.

Applying to the Commissioner

             (5)  The entity must:

                     (a)  make its application under this section in writing; and

                     (b)  include in the application all information relevant to the matters to which the Commissioner must have regard under:

                              (i)  subsection (2), if the application relates to a * distribution; or

                             (ii)  subsection (4), if the application relates to a class of distributions.

Review

             (6)  If the entity or a * member of the entity is dissatisfied with a determination under subsection (3), the entity or member may object to it in the manner set out in Part IVC of the Taxation Administration Act 1953 .

Guide to Division 203