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

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

1Short title [see Note 1]

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

2Commencement [see Note 1]

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

3Definitions

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:

1. (a)

   franking deficit tax payable under section 205‑45 of the Income Tax Assessment Act 1997; and

2. (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.

4Imposition of tax

Franking deficit tax is imposed.

5Amount of tax

The amount of franking deficit tax is equal to:

1. (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

2. (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

3. (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

4. (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 theNew Business Tax System (Franking Deficit Tax) Act 2002

Note 1

The New Business Tax System (Franking Deficit Tax) Act 2002 as shown in this compilation comprises Act No. 50, 2002 amended as indicated in the Tables below.

Table of Acts

Act Number and year Date of Assent Date of commencement Application, saving or transitional provisions

New Business Tax System (Franking Deficit Tax) Act 2002	50, 2002	29 June 2002	29 June 2002
New Business Tax System (Franking Deficit Tax) Amendment Act 2002	118, 2002	2 Dec 2002	Schedule 1: 29 June 2002 (see s. 2(1)) Remainder: Royal Assent	—

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted

Provision affected	How affected
S. 3.........................................	am. No. 118, 2002
S. 5.........................................	am. No. 118, 2002