New Business Tax System (Franking Deficit Tax) Act 2002 (Cth)

New Business Tax System (Franking Deficit Tax) Act 2002

Act No. 50 of 2002 as amended

This compilation was prepared on 16 December 2002 taking into account amendments up to Act No. 118 of 2002

The text of any of those amendments not in force on that date is appended in the Notes section

The operation of amendments that have been incorporated may be affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting of Attorney-General's Department, Canberra as amended

Contents 1 Short title [see Note 1] 2 Commencement [see Note 1] 3 Definitions 4 Imposition of tax 5 Amount of tax

Notes An Act to impose franking deficit tax, and for related purposes

1 Short title [see Note 1]

This Act may be cited as the New Business Tax System (Franking Deficit Tax) Act 2002.

2 Commencement [see Note 1]

This Act commences on the day on which it receives the Royal Assent.

3 Definitions

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.

4 Imposition of tax

Franking deficit tax is imposed.

5 Amount of tax

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. Notes to the New Business Tax System (Franking Deficit Tax) Act 2002