INCOME TAX ASSESSMENT ACT 1997
This section operates if an entity (the joining entity ) becomes a * subsidiary member of a * consolidated group at a time (the joining time ). 709-60(2)
If the joining entity's * franking account is in surplus just before the joining time:
(a) a debit equal to the * franking surplus arises at the joining time in the joining entity's franking account; and
(b) a credit equal to the franking surplus arises at the joining time in the franking account of the * head company of the group. 709-60(3)
If the joining entity's * franking account is in deficit just before the joining time:
(a) a credit equal to the * franking deficit arises at the joining time in the joining entity's franking account; and
(b) the joining entity is liable to pay * franking deficit tax as if the joining entity's income year had ended just before the joining time; and
(c) despite item 5 of the table in section 205-15 , a credit does not arise under that item in the joining entity's franking account because of that liability.
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