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  

Object

SECTION 709-55  

709-55   Object of this Subdivision  

The object of this Subdivision is for each ^* consolidated group to operate what is in substance a single ^* franking account, by ensuring that:

(a) there is a nil balance in the franking accounts of entities becoming ^* subsidiary members of the group; and

(b) the franking accounts of those subsidiary members do not operate while they are subsidiary members; and

(c) debits or credits that would otherwise arise in the franking accounts of the subsidiary members arise instead in the franking account of the ^* head company of the group; and

(d) the head company is the only ^* member of the group that can frank distributions.