Converting the franking account balance to a tax paid basis—companies whose 2001‑02 franking year ends on 30 June 2002
205-10 Converting the franking account balance to a tax paid basis—companies whose 2001‑02 franking year ends on 30 June 2002
This section applies to companies whose 2001‑02 franking year ends on 30 June 2002 under former Part IIIAA of the Income Tax Assessment Act 1936 (the 1936 Act).
If the company has a franking surplus of a particular class under former Part IIIAA of the 1936 Act at the end of 30 June 2002:
no franking credit arises under former section 160APL of that Act because of the surplus; and
a franking credit arises on 1 July 2002 in the franking account established under section 205‑10 of the Income Tax Assessment Act 1997 (the 1997 Act) for the company.
The amount of the franking credit is worked out under subsection (3).
The franking credit generated under paragraph (2)(b) from a franking surplus of a class specified in column 2 of the following table is worked out using the formula in column 3 of the table for that class.
Conversion of 1936 Act franking surplus into 1997 Act franking credit | ||
|---|---|---|
Item | Franking surplus | Franking credit generated under paragraph (2)(b) |
1 | class A franking surplus |
|
2 | class B franking surplus |
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3 | class C franking surplus |
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