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 719-435   Distributions by subsidiary members of MEC group taken to be distributions by head company  

719-435(1)    
Part 3-6 operates as if a ^* frankable distribution made by an ^* eligible tier-1 company that:

(a) is a member of a ^* MEC group; and

(b) is not the ^* provisional head company of the group;

had been made by the provisional head company of the group to a ^* member of the provisional head company.

Note:

Part 3-6 deals with imputation.

719-435(2)    
Part 3-6 operates as if a ^* frankable distribution made by a ^* subsidiary member of a ^* MEC group (the foreign-held subsidiary ) that is not an ^* eligible tier-1 company were a frankable distribution made by the ^* head company of the group to a ^* member of the head company if:

(a) the foreign-held subsidiary meets the set of requirements in section 703-45 , section 701C-10 of the Income Tax (Transitional Provisions) Act 1997 or section 701C-15 of that Act; and

(b) the frankable distribution is made to a foreign resident.