SYSTEM OF IMPUTATION

System of Imputation



System of Imputation

The introduction of the simplified imputation system replaces the former imputation provisions that were contained in Part IIIAA of the Income Tax Assessment Act 1936. The new provisions are contained within Part 3-6 of the Income Tax Assessment Act 1997 and take effect from 1 July 2002.

The simplified imputation system generally provides the same outcomes as the previous system, but has changed the mechanics of the former system to provide:

simpler rules

increased flexibility in franking distributions, and

consistency of treatment across entities receiving franked dividends

egislation enacted

The core rules introduced by the simplified imputation system were contained ...