Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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.