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 717-262   Deferred attribution credits  

717-262(1)    
This section operates for the purposes of Part X of the Income Tax Assessment Act 1936 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) disregarding this section, an attribution credit (the original credit ) will arise under subsection 371(8) of that Act at a later time for an attribution account entity in relation to the ^* head company of the group (including because of the operation of section 717-227 ) for the purposes of that Part; and

(c) at the leaving time the leaving company's attribution account percentage in relation to the attribution account entity for the purposes of that Part is more than nil.

Credit in relation to the leaving company

717-262(2)    
An attribution credit arises at the later time for the attribution account entity in relation to the leaving company. The credit is the amount worked out under subsection (3).

Amount of credit

717-262(3)    
The amount of the credit is worked out using the formula:

Leaving company's attribution account percentage in relation to the attribution account entity                       at the leaving time                       *Head company's attribution account percentage in relation to the attribution account entity just before the leaving time

×   Original credit

Reduction in credit in relation to the head company

717-262(4)    
The attribution credit that arises at the later time for the attribution account entity in relation to the ^* head company is reduced by the amount of the attribution credit that arises under subsection (2) in relation to the leaving company.