1
Short title [see Note 1]
1 Short title [see Note 1]
This Act may be cited as the New Business Tax System (Franking Deficit Tax) Act 2002.
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Commonwealth act
Mechanically, this Act creates a tax called the franking deficit tax and requires corporate tax entities with a deficit in their franking account to pay an amount equal to that deficit (see ss 4–5; cross‑referencing the Income Tax Assessment Act 1997 and the Income Tax (Transitional Provisions) Act 1997). It applies when an entity has a franking deficit at the end of an income year or immediately before it ceases to be a franking entity; liability is determined and collected under the referenced income tax provisions.
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Direct links to the current provisions in New Business Tax System (Franking Deficit Tax) Act 2002.
This Act may be cited as the New Business Tax System (Franking Deficit Tax) Act 2002.
This Act commences on the day on which it receives the Royal Assent.
In this Act:
corporate tax entity has the same meaning as in the Income Tax Assessment Act 1997.
franking account has the same meaning as in the Income Tax Assessment Act 1997.
franking credit has the same meaning as in the Income Tax Assessment Act 1997.
franking deficit has the same meaning as in the Income Tax Assessment Act 1997.
franking deficit tax means:
(a) franking deficit tax payable under section 205‑45 of the Income Tax Assessment Act 1997; and
(b) franking deficit tax payable under section 205‑25 of the Income Tax (Transitional Provisions) Act 1997.
franking entity has the same meaning as in the Income Tax Assessment Act 1997.
income year has the same meaning as in the Income Tax Assessment Tax 1997.
Franking deficit tax is imposed.
The amount of franking deficit tax is equal to: (a) in a case where a corporate tax entity is liable to pay franking deficit tax under subsection 205‑45(2) of the Income Tax Assessment Act 1997 because the entity has a franking deficit at the end of an income year—the amount of the entity’s franking deficit at the end of the income year; and (b) in a case where a corporate tax entity is liable to pay franking deficit tax under subsection 205‑45(3) of the Income Tax Assessment Act 1997 because the entity has a franking deficit immediately before it ceases to be a franking entity—the amount of the entity’s franking deficit immediately before it ceases to be a franking entity; and (c) in a case where a corporate tax entity is liable to pay franking deficit tax under subsection 205‑25(2) of the Income Tax (Transitional Provisions) Act 1997 because the entity has a franking deficit at the end of 30 June in the year 2003 or a later year—the amount of the entity’s franking deficit at that time; and (d) in a case where a corporate tax entity is liable to pay franking deficit tax under subsection 205‑25(3) of the Income Tax (Transitional Provisions) Act 1997 because the entity has a franking deficit immediately before it ceases to be a franking entity—the amount of the entity’s franking deficit immediately before it ceases to be a franking entity.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
This Act may be cited as the New Business Tax System (Franking Deficit Tax) Act 2002.
This Act commences on the day on which it receives the Royal Assent.
In this Act:
corporate tax entity has the same meaning as in the Income Tax Assessment Act 1997.
franking account has the same meaning as in the Income Tax Assessment Act 1997.
franking credit has the same meaning as in the Income Tax Assessment Act 1997.
franking deficit has the same meaning as in the Income Tax Assessment Act 1997.
franking deficit tax means:
(a) franking deficit tax payable under section 205‑45 of the Income Tax Assessment Act 1997; and
(b) franking deficit tax payable under section 205‑25 of the Income Tax (Transitional Provisions) Act 1997.
franking entity has the same meaning as in the Income Tax Assessment Act 1997.
income year has the same meaning as in the Income Tax Assessment Tax 1997.
Franking deficit tax is imposed.
The amount of franking deficit tax is equal to: (a) in a case where a corporate tax entity is liable to pay franking deficit tax under subsection 205‑45(2) of the Income Tax Assessment Act 1997 because the entity has a franking deficit at the end of an income year—the amount of the entity’s franking deficit at the end of the income year; and (b) in a case where a corporate tax entity is liable to pay franking deficit tax under subsection 205‑45(3) of the Income Tax Assessment Act 1997 because the entity has a franking deficit immediately before it ceases to be a franking entity—the amount of the entity’s franking deficit immediately before it ceases to be a franking entity; and (c) in a case where a corporate tax entity is liable to pay franking deficit tax under subsection 205‑25(2) of the Income Tax (Transitional Provisions) Act 1997 because the entity has a franking deficit at the end of 30 June in the year 2003 or a later year—the amount of the entity’s franking deficit at that time; and (d) in a case where a corporate tax entity is liable to pay franking deficit tax under subsection 205‑25(3) of the Income Tax (Transitional Provisions) Act 1997 because the entity has a franking deficit immediately before it ceases to be a franking entity—the amount of the entity’s franking deficit immediately before it ceases to be a franking entity.