Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 207.110

  (1)   This section applies to an entity to whom a * franked distribution is made, or * flows indirectly, in any of the following circumstances:

  (a)   the entity is an * exempt institution that is eligible for a refund and the distribution does not flow indirectly to the entity as a partner in a partnership under subsection   207 - 50(2);

  (b)   the distribution is, or the entity's * share of the distribution would have been, this kind of income in its hands:

  (i)   * exempt income under section   295 - 385 (about income from assets set aside to meet current pension liabilities), section   295 - 390 (about income from other assets used to meet current pension liabilities) or section   295 - 400 (about income of a PST attributable to current pension liabilities); or

  (ii)   * non - assessable non - exempt income under paragraph   320 - 37(1)(a) (segregated exempt assets of a life insurance company) or paragraph   320 - 37(1)(d) (certain amounts received by a friendly society) of this Act.

  (2)   The following have effect in relation to the entity:

  (a)   section   207 - 90 or 207 - 95 (as appropriate) does not apply to the entity;

  (b)   if the entity would, apart from section   207 - 90 or 207 - 95, be entitled to a * tax offset under section   207 - 20 or 207 - 45 in relation to the distribution--the entity is entitled to that tax offset;

  (c)   if the entity would not be entitled to such a tax offset, the entity is entitled to a tax offset under this section that is equal to:

  (i)   if the distribution is made to the entity--the * franking credit on the distribution; or

  (ii)   if the distribution * flows indirectly to the entity--the entity's * share of the franking credit on the distribution;

  (d)   if the distribution flows indirectly through the entity to another entity--subsection   207 - 35(3) and section   207 - 45 do not apply to that other entity.

Note:   Paragraph   (2)(c) only applies to an exempt institution that is eligible for a refund and that is not entitled to a tax offset under section   207 - 20 or 207 - 45. An entity covered by paragraph   (1)(b) will, in all cases, be entitled to a tax offset under section   207 - 20 or 207 - 45.