Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 208.15

                         To ensure that franking credits accumulated by an exempting entity are not the target of franking credit trading, these rules:

                            (a)    limit the circumstances in which a distribution franked with those credits can give rise to benefits under the imputation system; and

                            (b)    quarantine those credits by moving them into a separate account, called the exempting account, when the entity ceases to be an exempting entity; and

                            (c)    deny a recipient of a distribution franked with a credit from that account any benefit under the imputation system as a result of that distribution, unless the recipient was a member of the entity immediately before it became a former exempting entity.

Table of sections

208-20      Exempting entities

208-25      Effective ownership of entity by prescribed persons

208-30      Accountable membership interests

208-35      Accountable partial interests

208-40      Prescribed persons

208-45      Persons who are taken to be prescribed persons

208-50      Former exempting companies