New Business Tax System (Franking Deficit Tax) Act 2002

The New Business Tax System (Franking Deficit Tax) Act 2002 is an Australian Act that imposes franking deficit tax on corporate tax entities. The Act defines key terms, including "corporate tax entity," "franking account," "franking credit," "franking deficit," and "franking entity." Franking deficit tax is imposed on entities with a franking deficit, which means the amount by which the entity's franking credits exceed its franking liabilities. The amount of franking deficit tax is calculated based on the entity's franking deficit at the end of an income year or immediately before it ceases to be a franking entity.

Key Features:

Imposes franking deficit tax on corporate tax entities
Defines key terms related to franking and franking credits
Calculates franking deficit tax based on the entity's franking deficit
Provides specific rules for calculating franking deficit tax in certain situations

Notes:

This compilation was prepared on December 16, 2002, taking into account amendments up to Act No. 118 of 2002.
The text of amendments not in force on that date is appended in the Notes section.
* The operation of amendments may be affected by application provisions set out in the Notes section.

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