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  

Franking distributions by subsidiary member

SECTION 709-80   Subsidiary member ' s distributions on employee shares and certain preference shares taken to be distributions by the head company  

709-80(1)  
This section operates if:


(a) a * subsidiary member of a * consolidated group makes a * frankable distribution; and


(b) the distribution is made because an entity (the shareholder ) owns a * share in the subsidiary member; and


(c) the share must be disregarded under subsection 703-35(4) or 703-37(4) ; and


(d) the distribution is made to the shareholder, or to another entity because the shareholder owns the share; and


(e) the entity to which the distribution is made is not a * member of the group.

Note 1:

Subsection 703-35(4) requires certain shares acquired under employee share schemes to be disregarded.

Note 2:

Subsection 703-37(4) requires certain preference shares to be disregarded following an ADI restructure.

709-80(2)  
Part 3-6 operates as if the * distribution were a * frankable distribution made by the * head company of the group to a * member of the head company.

Note:

Part 3-6 deals with imputation.


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