Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 709.170

    There is no change to the status of the * head company of a * consolidated group if:

  (a)   the head company is an * exempting entity; and

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

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

Note 1:   If the subsidiary's franking account is in surplus, that surplus will be transferred to the head company's franking account: see subsection   709 - 60(2).

Note 2:   If the subsidiary's franking account is in deficit, it will be liable for franking deficit tax: see subsection   709 - 60(3).

Note 3:   The subsidiary's franking account does not operate while it is a member of the group: see section   709 - 65.