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.


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