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  

Treatment of head company's franking account

SECTION 709-70   Credits arising in head company's franking account  

709-70(1)  
This section operates if a credit would arise in the * franking account of a * subsidiary member of a * consolidated group at a time (the crediting time ) apart from section 709-65 .

709-70(2)  
A credit arises in the * franking account of the * head company of the group at the crediting time.

Note:

A credit can also arise in the head company's franking account at any time under section 205-15 .

709-70(3)  
The amount of the credit is the same as the amount of the credit that would arise in the * franking account of the * subsidiary member.

709-70(4)  
This section does not apply to a credit arising in the * subsidiary member's * franking account under paragraph 709-60(3)(a) .

Note:

Such a credit arises if the entity that became the subsidiary member had a deficit in its franking account just before the time it became the subsidiary member. The credit equals the deficit, creating a nil balance in the account from that 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.