Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-10 - PAY AS YOU GO (PAYG) INSTALMENTS  

Division 45 - Instalment payments  

Subdivision 45-R - Special rules for consolidated groups  

Operative provisions

SECTION 45-885   EARLY APPLICATION OF SUBDIVISION 45-Q TO THE HEAD COMPANY OF A NEW GROUP  

45-885(1)    
This section applies to a company for which all of the following conditions are satisfied in relation to a particular time (the starting time ):

(a) just before the starting time, the company was a *subsidiary member of a *consolidated group, or a member of a *MEC group;

(b) just before the starting time, the consolidated group or MEC group was a mature group (see subsection (4));

(c) at the starting time, either of the following applies:

(i) the company ceases to be a subsidiary member of the consolidated group, or a member of the MEC group;

(ii) the group ceases to exist (otherwise than because a MEC group or consolidated group is *created from the group, or because its *head company or *provisional head company becomes a *wholly-owned subsidiary of a member of another mature group);

(d) at the starting time, the company is the head company of another consolidated group;

(e) within 28 days after the starting time, or within such further period (if any) as the Commissioner allows, the Commissioner receives the notice under section 703-58 of the Income Tax Assessment Act 1997 in relation to the choice to consolidate, at and after the starting time, that other consolidated group under section 703-50 of the Income Tax Assessment Act 1997 .

45-885(2)    
For the purposes of this Part:

(a) the instalment rate that the Commissioner is taken to have given to the company under paragraph 45-760(2)(a) has effect as if it were the *initial head company instalment rate for the company as the *head company of the *consolidated group mentioned in paragraph (1)(d); and

(b) an instalment rate that would otherwise be the initial head company instalment rate for the company as the head company of that consolidated group is not to be treated as that initial head company instalment rate.

Note:

This means, subject to the provisions in section 45-705 , Subdivision 45-Q starts applying to the company as the head company of the consolidated group at the start of the instalment quarter that includes the starting time: see subsection (2) of that section and paragraph 45-760(2)(a) .

45-885(3)    
The Commissioner may, on the application of the company made within 28 days after the starting time, allow such extension of time for the purposes of paragraph (1)(e) as he or she considers appropriate.

Mature group

45-885(4)    
For the purposes of this section, a *consolidated group or a *MEC group is a mature group at a particular time if:

(a) for a consolidated group - Subdivision 45-Q applies to its *head company at that time; or

(b) for a MEC group - Subdivision 45-Q , as applied under Subdivision 45-S , applies to its *provisional head company at that time.