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  

Payment of group liability by former subsidiary member

SECTION 709-100   Refund of income tax to former subsidiary member  

709-100(1)  
This section operates if:


(a) an entity (the former subsidiary ) ceases to be a *subsidiary member of a *consolidated group (the old group ) at a particular time (the leaving time ); and


(b) at or after the leaving time, the former subsidiary *receives a refund of income tax or *receives a refund of diverted profits tax, for which it was jointly and severally liable under subsection 721-15(1) because it was a subsidiary member of the old group; and


(c) apart from this section, a *franking debit would arise under section 205-30 in the *franking account of the former subsidiary at a time (the debiting time ) because of that payment.

709-100(2)  
The debit:


(a) does not arise at the debiting time in the *franking account of the former subsidiary; and


(b) instead, arises at the debiting time in the franking account of the entity that was the *head company of the old group at the leaving time.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.