Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-90
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CONSOLIDATED GROUPS
Division 703
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Consolidated groups and their members
Basic concepts
SECTION 703-20
Certain entities that cannot be members of a consolidated group or consolidatable group
703-20(1)
The object of this section is to specify certain entities that cannot be * members of a * consolidated group because of the way their income is treated for income tax purposes.
703-20(2)
An entity of a kind specified in an item of the table cannot be a * member of a * consolidated group or a * consolidatable group at a time in an income year if the conditions specified in the item exist:
703-20(3)
Item 8 of the table in subsection (2) of this section has effect despite section 713-130 (which enables a public trading trust to form a consolidated group).
View history note
Hide history noteThe object of this section is to specify certain entities that cannot be * members of a * consolidated group because of the way their income is treated for income tax purposes.
703-20(2)
An entity of a kind specified in an item of the table cannot be a * member of a * consolidated group or a * consolidatable group at a time in an income year if the conditions specified in the item exist:
| Certain entities that cannot be members of a consolidated or consolidatable group | |||
| Item | An entity of this kind: | Cannot be a member of a consolidated group or consolidatable group if: | |
| 1 | An entity of any kind | At the time, the total * ordinary income and * statutory income of the entity is exempt from income tax under Division 50 | |
| 2 | A company | The company is a recognised medium credit union (as defined in section 6H of the Income Tax Assessment Act 1936 ) for the income year | |
| 3 | A company | The company: | |
| (a) | is an approved credit union for the income year for the purposes of section 23G of the Income Tax Assessment Act 1936 ; and | ||
| (b) | is not a recognised medium credit union (as defined in section 6H of that Act) or a recognised large credit union (as defined in that section) for the income year | ||
| 4 | A company | The company is a * CCIV at any time during the income year | |
| 5 | A company | The company is a * PDF at the end of the income year | |
| 6 | (Repealed by No 136 of 2012) | ||
| 7 | A trust | The trust is: | |
| (a) | a * complying superannuation entity for the income year; or | ||
| (b) | a * non-complying approved deposit fund or a * non-complying superannuation fund for the income year | ||
| 8 | A trust | The trust is a * CCIV sub-fund trust |
Note:
A subsidiary of a life insurance company cannot be a member of a consolidated group or consolidatable group in certain circumstances: see section 713-510 .
703-20(3)
Item 8 of the table in subsection (2) of this section has effect despite section 713-130 (which enables a public trading trust to form a consolidated group).
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