New Business Tax System (Franking Deficit Tax) Act 2002

No. 50, 2002

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

Contents

1 Short title...................................

2 Commencement...............................

3 Definitions..................................

4 Imposition of tax...............................

5 Amount of tax................................

New Business Tax System (Franking Deficit Tax) Act 2002

No. 50, 2002

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

[Assented to 29 June 2002]

The Parliament of Australia enacts:

1  Short title

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

2  Commencement

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

3  Definitions

  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 franking deficit tax payable under section 205‑45 of the Income Tax Assessment 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.

4  Imposition of tax

  Franking deficit tax is imposed.

5  Amount of tax

  The amount of franking deficit tax is equal to:

 (a) in a case where a corporate tax entity is liable to pay franking deficit tax 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

 (b) in a case where a corporate tax entity is liable to pay franking deficit tax 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.

[Minister’s second reading speech made in—

House of Representatives on 30 May 2002

Senate on 19 June 2002]