Commonwealth of Australia Consolidated Acts Commonwealth of Australia Consolidated ActsAn entity to whom a * franked distribution * flows indirectly in an income year is entitled to a * tax offset for that income year that is equal to its * share of the * franking credit on the distribution, if it is:
(a) an individual; or
(b) a * corporate tax entity when the distribution flows indirectly to it; or
(c) the trustee of a trust that is liable to be assessed on a share of, or all or a part of, the trust's * net income under section 98, 99 or 99A of the Income Tax Assessment Act 1936 for that income year; or
(ca) the trustee of an * FHSA trust; or
(d) the trustee of a * complying superannuation fund, a * non-complying superannuation fund, a * complying approved deposit fund, a * non-complying approved deposit fund or a * pooled superannuation trust in relation to that income year.
Note: The entities covered by this section are the ultimate recipients of the distribution because the distribution does not flow indirectly through them to other entities. As a result they are also the ultimate taxpayers in respect of the distribution and are given the tax offset to acknowledge the income tax that has already been paid on the profits underlying the distribution.