Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 709 - Other rules applying when entities become subsidiary members etc.  

Subdivision 709-A - Franking accounts  

Treatment of head company's franking account

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

709-70(1)    
This section operates if a credit would arise in the ^* franking account of a ^* subsidiary member of a ^* consolidated group at a time (the crediting time ) apart from section 709-65 .

709-70(2)    
A credit arises in the ^* franking account of the ^* head company of the group at the crediting time.

Note:

A credit can also arise in the head company's franking account at any time under section 205-15 .

709-70(3)    
The amount of the credit is the same as the amount of the credit that would arise in the ^* franking account of the ^* subsidiary member.

709-70(4)    
This section does not apply to a credit arising in the ^* subsidiary member's ^* franking account under paragraph 709-60(3)(a) .

Note:

Such a credit arises if the entity that became the subsidiary member had a deficit in its franking account just before the time it became the subsidiary member. The credit equals the deficit, creating a nil balance in the account from that time.