Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 202.85

Changing the franking credit on a specified distribution

  (1)   The Commissioner may, on application by an entity, determine in writing that the entity may change the * franking credit on a specified * distribution by amending the * distribution statement for the distribution.

  (2)   In deciding whether to make a determination under subsection   (1), the Commissioner must have regard to:

  (a)   whether the date for lodgment of an * income tax return by the recipient of the specified * distribution for the income year in which the distribution was made has passed; and

  (b)   whether, if the * franking credit on the specified distribution were changed in accordance with the entity's application, there would be any difference in the * withholding tax liability of the recipient; and

  (c)   whether amending the distribution statement as requested by the entity would lead to a breach of the * benchmark rule, or any of the rules in Division   204 (the anti - streaming rules); and

  (d)   whether amending the distribution statement as requested by the entity would lead to a new * benchmark franking percentage being set for the entity for the * franking period in which the distribution was made; and

  (e)   any other matters that the Commissioner considers relevant.

Changing the franking credits on a specified class of distributions

  (3)   The Commissioner may, on application by an entity, determine in writing that the entity may change the * franking credits on * distributions of a specified class by amending the * distribution statements for the distributions.

  (4)   In deciding whether to make a determination under subsection   (3), the Commissioner must have regard to:

  (a)   the number of recipients to whom an amended * distribution statement would be made; and

  (b)   whether the date for lodgment of * income tax returns by recipients of * distributions of the specified class for the income year in which the distributions were made has passed; and

  (c)   whether, if the * franking credit on the specified distributions were changed in accordance with the entity's application, there would be any difference in the * withholding tax liability of the recipients; and

  (d)   whether amending the distribution statements as requested by the entity would lead to a breach of the * benchmark rule, or any of the rules in Division   204 (the anti - streaming rules); and

  (e)   whether amending the distribution statements as requested by the entity would lead to a new * benchmark franking percentage being set for the entity for the * franking period in which the distributions were made; and

  (f)   any other matters that the Commissioner considers relevant.

Applying to the Commissioner

  (5)   The entity must:

  (a)   make its application under this section in writing; and

  (b)   include in the application all information relevant to the matters to which the Commissioner must have regard under:

  (i)   subsection   (2), if the application relates to a * distribution; or

  (ii)   subsection   (4), if the application relates to a class of distributions.

Review

  (6)   If the entity or a * member of the entity is dissatisfied with a determination under subsection   (3), the entity or member may object to it in the manner set out in Part   IVC of the Taxation Administration Act 1953 .