Commonwealth of Australia Consolidated Acts Commonwealth of Australia Consolidated Acts(1) The Commissioner may cancel a company's * NZ franking choice by written notice given to the company, but only if the Commissioner is satisfied that either:
(a) the company was liable to pay * franking deficit tax or * over-franking tax (whether or not because of section 220-800 (about joint and several liability for the tax)) and the company did not pay the tax by the day on which it was due and payable; or
(b) the company has not complied with subsection 214-15(2) or 214-20(2) (about giving the Commissioner a * franking return).
(2) To avoid doubt, the cancellation takes effect when the notice is given to the company.
Review of cancellation
(3) If the company is dissatisfied with the cancellation of the choice, it may object against the cancellation in the manner set out in Part IVC of the Taxation Administration Act 1953 .
Note: That Part provides for review of the cancellation objected against.
Effect of cancelling a choice on making another choice in future
(4) If the company makes another * NZ franking choice, it does not come into force unless the Commissioner consents in writing to the choice coming into force.
(5) In consenting, the Commissioner may specify when the choice is to come into force. The consent has effect according to its terms, despite section 220-40.
(6) The Commissioner must give a copy of the consent to the company.
Table of sections
Franking NZ franking companies' distributions
220-100 Residency requirement for franking
220-105 Unfrankable distributions by NZ franking companies
220-110 Maximum franking credit under section 202-60
NZ franking companies' franking accounts etc.
220-205 Franking credit for payment of NZ franking company's withholding tax liability
220-210 Effect of franked distribution to NZ franking company or flowing indirectly to NZ franking company
220-215 Effect on franking account if NZ franking choice ceases to be in force
Franking accounts of NZ franking company and some of its 100% subsidiaries
220-300 NZ franking company's franking account affected by franking accounts of some of its 100% subsidiaries
Effect of NZ franking company making distribution that is non-assessable and non-exempt
220-350 Providing for a franking credit to arise
Effects of supplementary dividend from NZ franking company
220-400 Gross-up and tax offset for distribution from NZ franking company reduced by supplementary dividend
220-405 Franked distribution and supplementary dividend flowing indirectly
220-410 Franking credit reduced if tax offset reduced
Rules about exempting entities
220-500 Publicly listed post-choice NZ franking company and its 100% subsidiaries are not exempting entities
220-505 Post-choice NZ franking company is not automatically prescribed person
220-510 Parent company's status as prescribed person sets status of all other members of same wholly-owned group
NZ franking companies' exempting accounts
220-605 Effect on exempting account if NZ franking choice ceases to be in force
Tax effect of distribution franked by NZ franking company with an exempting credit
220-700 Tax effect of distribution franked by NZ franking company with an exempting credit
Joint and several liability for NZ resident company's unmet franking liabilities
220-800 Joint and several liability for NZ resident company's franking tax etc.
Franking NZ franking companies' distributions