Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 709.50

Only the head company of a consolidated group has an operating franking account. The subsidiary members' franking accounts do not operate while they are subsidiary members. Debits or credits that would otherwise arise in subsidiary members' franking accounts arise instead in the head company's franking account.

Table of sections

Object

709 - 55   Object of this Subdivision

Treatment of franking accounts at joining time

709 - 60   Nil balance franking account for joining entity

Treatment of subsidiary member's franking account

709 - 65   Subsidiary member's franking account does not operate

Treatment of head company's franking account

709 - 70   Credits arising in head company's franking account

709 - 75   Debits arising in head company's franking account

Franking distributions by subsidiary member

709 - 80   Subsidiary member's distributions on employee shares and certain preference shares taken to be distributions by the head company

709 - 85   Non - share distributions by subsidiary members taken to be distributions by head company

709 - 90   Subsidiary member's distributions to foreign resident taken to be distributions by head company

Payment of group liability by former subsidiary member

709 - 95   Payment of group liability by former subsidiary member

709 - 100   Refund of income tax to former subsidiary member