Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 169

169.(1) This section applies if:

   (a)  a relevant entity has given a paragraph 221AQ(1)(a) notice for the
        1993-94 year of income; and

   (b)  apart from this section, the relevant entity is liable to make an
        initial payment of tax in respect of its taxable income of the year of
        income not later than the 28th day of the 3rd month next following the
        month in which the last day of that year of income occurs; and

   (c)  before the notice was given, the relevant entity paid an amount (the

"FDT amount") in respect of franking deficit tax in respect of the franking
year in which the last day of that year of income occurs.

(2) If the relevant entity is not a life assurance company and the amount of
the initial payment of tax does not exceed the FDT amount, the relevant entity
is not liable to pay the initial payment of tax.

(3) If the relevant entity is not a life assurance company and the amount of
the initial payment of tax exceeds the FDT amount, the initial payment of tax
is taken to be an amount equal to the excess.

(4) If:

   (a)  the relevant entity is a life assurance company; and

   (b)  the amount of the initial payment of tax does not exceed the sum of:

        (i)    the FDT amount; and

        (ii)   the eligible fund component; the initial payment of tax is
               taken to be an amount equal to the eligible fund component.

(5) If:

   (a)  the relevant entity is a life assurance company; and

   (b)  the amount of the initial payment of tax exceeds the sum of:

        (i)    the FDT amount; and

        (ii)   the eligible fund component; the initial payment of tax is
               taken to be an amount equal to the amount by which the initial
               payment of tax exceeds the FDT amount.

(6) For the purposes of this section, the eligible fund component of a life
assurance company is so much of the initial payment of tax as is attributable
to so much of the estimated tax as relates to the following components of
taxable income:

   (a)  the CS/RA component (within the meaning of Division 8 of Part III of
        the Assessment Act);

   (b)  the AD/RLA component (within the meaning of Division 8 of Part III of
        the Assessment Act);

   (c)  the NCS component (within the meaning of Division 8 of Part III of the
        Assessment Act).