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 709-75   Debits arising in head company's franking account  

709-75(1)  
This section operates if a debit would arise in the * franking account of a * subsidiary member of a * consolidated group at a time (the debiting time ) apart from section 709-65 .

709-75(2)  
A debit arises in the * franking account of the * head company of the group at the debiting time.

Note:

A debit can also arise in the head company's franking account at any time under section 205-30 .

709-75(3)  
The amount of the debit is the same as the amount of the debit that would arise in the * franking account of the * subsidiary member.

709-75(4)  
This section does not apply to a debit arising in the * subsidiary member's * franking account under paragraph 709-60(2)(a) .

Note:

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


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