CHAPTER 3
-
SPECIALIST LIABILITY RULES
PART 3-90
-
CONSOLIDATED GROUPS
History
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
).
Division 709
-
Other rules applying when entities become subsidiary members etc.
History
Div 709 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
).
Subdivision 709-C
-
Treatment of excess franking deficit tax offsets when entity becomes a subsidiary member of a consolidated group
History
Subdiv 709-C inserted by No 107 of 2003.
SECTION 709-190
709-190
Exit history rule not to treat leaving entity as having a franking deficit tax offset excess
To avoid doubt, if:
(a)
the
*
head company of a
*
consolidated group is entitled to a
*
tax offset under section
205-70
for an income year; and
(b)
an amount (the
excess
) of the offset remains after applying section
63-10
(about the tax offset priority rules) to the head company
'
s basic income tax liability for that income year; and
(c)
an entity ceases to be a
*
subsidiary member of the group in the income year;
the entity is
not
taken because of section
701-40
(the exit history rule):
(d)
to have the excess; or
(e)
to have another excess of that kind because of the circumstances that caused the head company to have the excess.
History
S 709-190 amended by No 110 of 2014, s 3 and Sch 5 items 117 and 118, by substituting para (b) and substituting
"
excess
"
for
"
excess mentioned in paragraph (b)
"
in para (d), applicable in relation to the 2006-07 income year and later income years. Para (b) formerly read:
(b)
the offset exceeds the amount that would have been the head company
'
s income tax liability for that income year if it did not have that offset (but had all its other tax offsets); and
S 709-190 inserted by No 107 of 2003.