Income Tax Assessment Act 1997

Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Div 717 inserted by No 90 of 2002, s 3 and Sch 6 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Subdiv 717-E (heading) substituted by No 114 of 2010, s 3 and Sch 1 item 57, effective 14 July 2010. The heading formerly read:

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

Subdiv 717-E (heading) substituted by No 16 of 2003, s 3 and Sch 8 item 4, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ). The heading formerly read:

Subdivision 717-E - Attributable income: exit rules

Subdiv 717-E inserted by No 90 of 2002, s 3 and Sch 6 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

S 717-265 repealed by No 114 of 2010, s 3 and Sch 1 item 61, applicable in relation to the 2010-11 year of income for a taxpayer and later years of income. S 717-265 formerly read:

SECTION 717-265 Calculating FIF income where a company leaves the group  
717-265(1)
This section modifies the operation of Part XI of the Income Tax Assessment Act 1936 in relation to a company (the transferor company ) if:

(a) the transferor company is the ^* head company of a ^* consolidated group at a time (the surplus time ); and

(b) for the purposes of that Part, the FIF attribution account percentage of the transferor company in relation to a FIF attribution account entity that is a ^* FIF is more than nil at the surplus time; and

(c) another company (the leaving company ) ceases to be a ^* subsidiary member of the group at the time (the leaving time ) just after the surplus time; and

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

717-265(2)
That Part operates in relation to the transferor company as if a notional accounting period of the ^* FIF in relation to the transferor company ended at the time (the credit/debit time ) just before the surplus time.

717-265(3)
That Part operates in relation to the transferor company as if the next notional accounting period of the ^* FIF in relation to the transferor company started at the surplus time and continued until whichever of these times occurs first:

(a) the time when a notional accounting period of the FIF in relation to the transferor company would have ended apart from this section;

(b) the time when the period ends because of another application of this section.

717-265(4)
That Part operates in relation to the transferor company as if subsection 485(3) of that Act provided that the operative provision applied to the transferor company in relation to the ^* FIF in respect of the notional accounting period of that FIF that ended in the income year that included the credit/debit time.

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S 717-265(4) amended by No 97 of 2008 , s 3 and Sch 3 item 150, by substituting " income year " for " year of income " , effective 3 October 2008.

717-265(5)
That Part operates in relation to the leaving company, in relation to the ^* FIF in respect of the notional accounting period of that FIF that included the leaving time, as if any interest in the FIF of which the leaving company became the holder because subsection 701-1(1) (the single entity rule) ceased to apply at the leaving time had been acquired by the leaving company at that time.

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S 717-265(5) and (6) substituted for s 717-265(5) by No 16 of 2003, s 3 and Sch 8 item 8, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ). S 717-265(5) formerly read:

717-265(5)
Paragraph 538(2)(d) of that Act operates in relation to the leaving company in relation to the ^* FIF in respect of the notional accounting period of that FIF that included the leaving time as if:

(a) the leaving company had acquired the interest or interests mentioned in that paragraph during that period (so far as those interests are held by the leaving company because it ceased to be a ^* subsidiary member of the group); and

(b) the amount or value of the consideration paid or given by the leaving company in respect of the acquisition was equal to the amount worked out under paragraph 538(2)(a) of that Act in relation to the transferor company in relation to the FIF in respect of the notional accounting period mentioned in subsection (2) of this section.

Note: The modifications made by this section:

(a) apply if a company leaves a consolidated group during a notional accounting period of a FIF in which the company has an interest; and

(b) allow the appropriate calculation of amounts attributed under FIF rules to the transferor company and leaving company before and after the leaving time; and

(c) mean that foreign investment fund income that accrued to the transferor company from the FIF will be included in the transferor company's assessable income and will give rise to a FIF attribution credit, and may also give rise to a FIF attribution debit, in relation to the transferor company; and

(d) mean that the FIF attribution surplus and the FIF attributed tax account surplus for the FIF attribution account entity in relation to the transferor company at the surplus time will take account of credits and debits arising at the credit/debit time and earlier.

717-265(6)
Paragraph 538(2)(d) of that Act operates in relation to the leaving company, in relation to the ^* FIF in respect of the notional accounting period of that FIF that included the leaving time, as if the amount or value of the consideration paid or given by the leaving company in respect of any acquisition mentioned in subsection (5) of this section was equal to the amount worked out under paragraph 538(2)(a) of that Act in relation to the transferor company in relation to the FIF in respect of the notional accounting period mentioned in subsection (2) of this section.

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History

S 717-265(5) and (6) substituted for s 717-265(5) by No 16 of 2003, s 3 and Sch 8 item 8, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

S 717-265 inserted by No 90 of 2002, s 3 and Sch 6 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).