Your shopping cart is empty

On 11 December 2013, the ATO released for public comment by 24 January 2014 draft Taxation Determination TD 2013/D10 entitled "Income tax: does a franking credit arise in the franking account of a head company of a consolidated group when a franked distribution is made by an entity that is not a member of the consolidated group to a trust that is a subsidiary member of the consolidated group?"

The answer given to the question posed is as follows:

"Yes. Provided the head company is entitled to a tax offset under Division 207 of the Income Tax Assessment Act 1997 (ITAA 1997)1 because of the franked distribution, a franking credit will arise in the head company's franking account on the day on which the distribution is made."

The draft also states:

"Note that this draft Determination does not apply where the head company is a life insurance company (as defined in s 995-1(1)), or is treated as if it were a life insurance company by s 713-505, and:

  • the head company is a mutual insurance company as defined in s 121AB of ITAA 1936, or
  • the tax offset under Division 207 to which the head company is entitled because of the franked distribution is subject to the refundable tax offset rules in Division 67."

Media Release Search
Eg. TD 2005/D52 ALL words EXACT phrase WITHOUT words Date range
From To