Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 78

78. After section 160AQCM of the Principal Act the following section is
inserted in Subdivision C of Division 2 of Part IIIAA: Life assurance
companies-statutory fund component

"160AQCN.(1) If, on a particular day, a class B franking credit of a company
arises under any of the following provisions:

   (a)  section 160APVBA;

   (b)  section 160APVBB;

   (c)  subsection 160APVC(1);

   (d)  subsection 160APVC(3);

   (e)  subsection 160APVD(2); there arises on that day a class A franking
        debit of the company equal to the amount that would have been the
        amount of that class B franking credit if the assumptions set out in
        subsection (2) were made.

"(2) The assumptions are as follows:

   (a)  the assumption that the class B franking credit had been calculated
        using a statutory factor of 0.2 instead of 1.0;

   (b)  the assumption that the class B franking credit had been calculated by
        reference to the special life company tax rate for the year of tax
        concerned instead of by reference to the general company tax rate for
        the year of tax concerned.

"(3) If:

   (a)  on a particular day, a class A franking credit of a company arises
        under subsection 160APVH(1) because of paragraph (a) of that
        subsection in relation to an initial payment of tax in respect of a
        year of income; and

   (b)  on or after that day, a notice of an original company tax assessment
        for the year of income is served, or deemed to be served, on the
        company; there arises, on the day on which the notice is served or
        deemed to be served, a class A franking debit of the company equal to
        the amount of the class A franking credit.

"(4) If:

   (a)  on a particular day, a class A franking credit of a company arises
        under subsection 160APVH(1) because of paragraph (c) of that
        subsection in relation to a further payment on account of tax in
        respect of a year of income; and

   (b)  on or after that day, a notice of an original company tax assessment
        for the year of income is served, or deemed to be served, on the
        company; there arises, on the day on which the notice is served or
        deemed to be served, a class A franking debit of the company equal to
        the amount of the class A franking credit.".