This provides the definition of franked investment income and franked payment. Subsection (1) defines franked investment income as the sum of the amount or value of a distribution received by a company resident in the State in respect of which the company is entitled to a tax credit and the amount of that tax credit is computed under section 88. The members have received an example of this operation. Subsection (2) gives the name " franked payment" to the sum of the distribution made by a resident company and the tax credit attaching to the distribution. A franked payment is regarded as made for the period in which the distribution forming part of the franked payment is made. It sounds very complicated but the example makes it simple. It is a new term which people will have to understand.
SECTION 24.
Question proposed: " That section 24 stand part of the Bill."
Does this apply to franked income coming in from, say, a corporation outside the country?
No, it is from a company resident in the State.
Not in relation to franked income of a company outside the State, say, under a double taxation or anything of that nature?
No.
Question put and agreed to.