Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 709.160

  (1)   This section operates if:

  (a)   the * head company of a * consolidated group is neither an exempting entity nor a * former exempting entity; and

  (b)   a * corporate tax entity becomes a * subsidiary member of the group at a time (the joining time ); and

  (c)   the entity is an * exempting entity at the joining time.

  (2)   These rules apply to the * consolidated group.

 

Rules applying to * consolidated group
Item	Rule
1	The * head company becomes a * former exempting entity at the joining time
2	The * head company has both a * franking account and an * exempting account
3	If the * subsidiary member's * franking account has a * franking surplus at the joining time: (a) a debit equal to that surplus arises in that account at the joining time; and (b) a credit equal to that surplus arises in the * exempting account of the * head company at the joining time
4	Subsection   709 - 60(2) (about franking surplus) does not apply to the * subsidiary member
5	Item   1 of the table in section   208 - 115 does not apply to the * head company
6	Item   1 of the table in section   208 - 120 does not apply to the * head company
7	Item   1 of the table in section   208 - 130 does not apply to the * head company
8	Item   1 of the table in section   208 - 145 does not apply to the * head company

Note 1:   If the subsidiary's franking account is in deficit, it will be liable for franking deficit tax: see subsection   709 - 60(3).

Note 2:   The subsidiary's franking account does not operate while it is a member of the group: see section   709 - 65.