Other rules for consolidated groups

A number of rules have been introduced to accommodate consolidated groups. These include:

  • the extension of existing anti-avoidance measures that counter franking credit trading, and
  • special rules which provide for transfer to the head company of any excess in tax offset arising from a franking deficit tax liability of an entity that becomes a subsidiary member of a consolidated group.

The special franking account rules that apply to consolidated groups are contained in Subdivision 709-A of the Income Tax Assessment Act 1997 (ITAA 1997).

Find out more

Detailed information on the treatment of franking credits under consolidation can be found at Consolidation

End of find out more
    Last modified: 09 Jul 2014QC 17505