Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-H - Imputation issues  

Operative provisions

SECTION 719-430   Transfer of franking account balance on cessation event  

719-430(1)    
This section operates if:

(a) a ^* cessation event happens to the ^* provisional head company of a ^* MEC group (the former head company ); and

(b) another company (the new head company ) is appointed as the provisional head company of the group under subsection 719-60(3) .

719-430(2)    
When the new head company is appointed:

(a) the ^* franking account of the former head company ceases to operate; and

(b) the new head company has a franking account; and

(c) any ^* franking surplus or ^* franking deficit in the franking account of the former head company just before the ^* cessation event happened becomes that of the new head company.