INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 717 - International tax rules  

Subdivision 717-E - Transfer of certain surpluses under CFC provisions and former FIF and FLP provisions: exit rules  

SECTION 717-255   FIF surpluses  

717-255(1)  
This section operates for the purposes of sections 23AK and 23B of the Income Tax Assessment Act 1936 (the 1936 Act ) if:


(a) a company (the leaving company ) ceases to be a * subsidiary member of a * consolidated group at a time (the leaving time ); and


(b) just before the leaving time, there was a post FIF abolition surplus for a FIF attribution account entity in relation to the * head company of the group for the purposes of those sections; and


(c) at the leaving time, the leaving company ' s FIF attribution account percentage in relation to the FIF attribution account entity for the purposes of those sections is more than nil. Credit in relation to the leaving company

717-255(2)  
A post FIF abolition credit arises at the leaving time for the FIF attribution account entity in relation to the leaving company. The credit is the amount worked out under subsection (4). Debit in relation to head company

717-255(3)  
A post FIF abolition debit arises at the leaving time for the FIF attribution account entity in relation to the company that was the *head company of the group just before the leaving time. The debit is the amount worked out under subsection (4). Amount of credit and debit

717-255(4)  
The amount of the credit and debit is worked out using the formula:


Leaving company ' s FIF attribution account percentage in relation to the FIF attribution account entity at the leaving time × Post FIF abolition surplus for the FIF attribution account entity in relation to the * head company just before the leaving time
*Head company ' s FIF attribution account percentage in relation to the FIF attribution account entity just before the leaving time

Definitions

717-255(5)  
In this section:

FIF attribution account entity
has the same meaning as in former Part XI of the Income Tax Assessment Act 1936 .

FIF attribution account percentage
has the same meaning as in former Part XI of the Income Tax Assessment Act 1936 .

post FIF abolition credit
has the same meaning as in the Income Tax Assessment Act 1936 .

post FIF abolition debit
has the same meaning as in the Income Tax Assessment Act 1936 .

post FIF abolition surplus
has the same meaning as in the Income Tax Assessment Act 1936 .


 

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