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-C - Treatment of excess franking deficit tax offsets when entity becomes a subsidiary member of a consolidated group  

SECTION 709-190   709-190   Exit history rule not to treat leaving entity as having a franking deficit tax offset excess  


To avoid doubt, if:


(a) the * head company of a * consolidated group is entitled to a * tax offset under section 205-70 for an income year; and


(b) an amount (the excess ) of the offset remains after applying section 63-10 (about the tax offset priority rules) to the head company ' s basic income tax liability for that income year; and


(c) an entity ceases to be a * subsidiary member of the group in the income year;

the entity is not taken because of section 701-40 (the exit history rule):


(d) to have the excess; or


(e) to have another excess of that kind because of the circumstances that caused the head company to have the excess.


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